Deep Integration with the EU and its Likely Impact on Selected ENP Countries and Russia

96 Pages Posted: 26 Jan 2010

See all articles by Maryla Maliszewska

Maryla Maliszewska

CASE - Center for Social and Economic Research

Irina Orlova

CASE - Center for Social and Economic Research - CASE Ukraine

Svitlana Taran

CASE - Center for Social and Economic Research - CASE Ukraine

Date Written: 2009

Abstract

The aim of this study is to estimate the impact of the removal of NTBs in trade between the EU and its selected CIS partners: Russia, Ukraine, Georgia, Armenia and Azerbaijan (CIS5). The report includes a discussion of methodologies of measurement of non-tariff barriers and the impact of their removal, including a review of previous studies focusing on CEE and CIS regions. Further, we employ a computable general equilibrium model encompassing the following three pillars of trade facilitation: legislative and regulatory approximation, reform of customs rules and procedures and liberalization of the access of foreign providers of services. We conclude that a reduction of NTBs and improved access to the EU market would bring significant benefits to the CIS5 countries in terms of welfare gains, GDP growth, increases in real wages and expansion of international trade. The possible welfare implications of deep integration with the EU range from 5.8% of GDP in Ukraine to sizeable expected gains in Armenia (3.1%), Russia (2.8%), Azerbaijan (1.8%) and Georgia (1.7%).

Keywords: institutional harmonization, European integration, European Neighborhood Policy, ENP, non-tariff barriers, NTBs, Computable Gerneral Equilibrium, CGE model

JEL Classification: F13, F14, F15, F17

Suggested Citation

Maliszewska, Maryla and Orlova, Irina and Taran, Svitlana, Deep Integration with the EU and its Likely Impact on Selected ENP Countries and Russia (2009). CASE Network Reports No. 88, Available at SSRN: https://ssrn.com/abstract=1518342 or http://dx.doi.org/10.2139/ssrn.1518342

Maryla Maliszewska (Contact Author)

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Irina Orlova

CASE - Center for Social and Economic Research - CASE Ukraine ( email )

Ukraine

Svitlana Taran

CASE - Center for Social and Economic Research - CASE Ukraine ( email )

Ukraine

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