Speed of convergence and relocation: New EU member countries catching up with the old

Arbeitspapier

Economic convergence of the new member countries (NMCs) of the EU towards the incumbent EU countries (EU-15), not only in terms of real income, but also in nominal terms, is of paramount importance for both partners. We build a dynamic CGE model, starting from the Balassa-Samuelson two-sector framework, but modify and enlarge it with, i.a., endogenous capital formation, consumption behaviour and labour mobility to address several other issues like uncertainty, welfare and sustainability in terms of foreign indebtedness. At the same time we evaluate, by endogenising FDI flows, what impact convergence has on the EU-15 and what is the interaction between the two regions through FDI. We find that in a general equilibrium setting fears of adverse effects of a relocation of EU-15 manufacturing to the NMCs are not well founded.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ETLA Discussion Papers ; No. 963

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Integration ; International Investment; Long-term Capital Movements ; Economic Growth of Open Economies
• Thema: Convergence ; New Member Countries ; EU-15 ; Konvergenssi ; uudet jäsenmaat ; EU-15 -maat ; Entwicklungskonvergenz ; Verarbeitendes Gewerbe ; Standortwettbewerb ; EU-Staaten ; EU-Staaten (Osteuropa)

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Alho, Kari E. O. ; Kaitila, Ville ; Widgrén, Mika
• Ereignis: Veröffentlichung
• (wer): The Research Institute of the Finnish Economy (ETLA)
• (wo): Helsinki
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/63930
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ