The Impact of EU Enlargement on Member States: A CGE Approach

THE CENTRAL AND EASTERN EUROPEAN COUNTRIES AND THE EUROPEAN UNION, Chapter 2, Michael Artis and Anindya Banerjee, eds., Cambridge University Press, 2003

54 Pages Posted: 29 Aug 2005 Last revised: 22 Aug 2008

See all articles by Paolo Zanghieri

Paolo Zanghieri

Generali Investments Europe; University of Bologna - Department of Economics

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne; Paris School of Economics; CEPII

Mohamed Hedi Bchir

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: August 1, 2003

Abstract

This paper seeks to analyse the impact of European Union enlargement on accession countries and current EU as a whole, using a Computable General Equilibrium Model. Our aim is to provide an assessment of the impact of enlargement on the size and efficiency of firms and the varieties of products offered to consumers on the one side, quantify the macroeconomic effects in terms of welfare and factor prices (in particular wages) and gauge which sectors will be most heavily affected and in which countries production is more likely to relocate. We find that, all in all the impact on current EU members is negligible, whereas accession countries will face huge, and not always beneficial consequences. We also find that Copenhagen CAP agreements will play a crucial role.

Keywords: European integration, enlargement, CGE modelling, transition economies

JEL Classification: F15, F14, F17

Suggested Citation

Zanghieri, Paolo and Fontagne, Lionel and Bchir, Mohamed Hedi, The Impact of EU Enlargement on Member States: A CGE Approach (August 1, 2003). THE CENTRAL AND EASTERN EUROPEAN COUNTRIES AND THE EUROPEAN UNION, Chapter 2, Michael Artis and Anindya Banerjee, eds., Cambridge University Press, 2003, Available at SSRN: https://ssrn.com/abstract=616641

Paolo Zanghieri

Generali Investments Europe ( email )

Corso Italia 6
Milan, MI 20122
Italy

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Lionel Fontagne (Contact Author)

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
106-112 Bd de l'Hôpital
Paris, 75013
France
+33 1 44 07 89 94 (Phone)
+33 1 53 68 55 01 (Fax)

HOME PAGE: http://lionelfontagne.weebly.com/

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33 1 44 07 89 94 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

CEPII ( email )

9 Rue Georges Pitard
Paris, 75015
France
+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Mohamed Hedi Bchir

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 Rue Georges Pitard
Paris Cedex 15, F-75015
France
33 1 53 68 55 10 (Phone)

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