The Effects of Foreign Trade Liberalisation and Financial Flows between Slovenia and the EU after Accession

Abstract:     
The new version of the CGE model of the Slovenian economy, based on the 1998 SAM, was used for simulations of the consequences of further foreign trade liberalization after 1998 as the outcome of the finished processes of implementation of Free Trade Agreements and the European Agreement, adaptation of the Customs Tariff to the EU Common External Tariff for the manufacturing products, adoption of the EU Common External Tariff after the accession of Slovenia to the EU as well as the estimated transfers between both budgets. Results obtained show a positive net outcome of the Slovenian accession to the EU in the long run. On the other hand, rational behaviour of the government will certainly moderate possible short run negative effects and improve favourable long run effects.

Number of Pages in PDF File: 22

Keywords: Computable General Equilibrium Model, EU Accession, Financial Flows, Trade Liberalization, Transition Country, Regionalism

JEL Classification: D58, F15, F43, E2

Accepted Paper Series