EU Enlargement and Its Impacts on East Asia
Dominique Van der Mensbrugghe
Journal of Asian Economics, Vol. 14, No. 6, pp. 843-860, January 2004
Ten countries - most completing their transition from socialist-based economies to market economies - are slated to join the European Union (EU) in 2004 and four additional countries are expected to become members at some future dates. Despite a relatively small economic size of the accession countries, this type of deep integration can have non-negligible effects on countries outside of the preferential zone as the reduction in barriers across partners leads to a re-orientation of trade. In this paper, we evaluate the extent of trade adjustments and the economic impacts it will have on the East Asian economies using a dynamic computable general equilibrium (CGE) model. The overall macroeconomic effects on East Asia are small. There is some trade diversion, but there may be an opportunity to increase market penetration in some sectors of the expanding EU for which East Asia has a marked comparative advantage. The paper also assesses the relative importance of linking trade openness to productivity and lowering trade costs between the accession countries and the EU-15.
Number of Pages in PDF File: 40
Keywords: EU enlargement, East Asia, CGE model
JEL Classification: F13, F15Accepted Paper Series
Date posted: April 5, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.579 seconds