DYNAMIC EFFECTS OF THE ENLARGEMENT ON EU MANUFACTURING*
Keywords:
Enlargement countries, dynamic integration effects.Abstract
The paper presents quantitative estimates of the dynamic effects of integration of the entrance of ten Central and Eastern European countries including Malta and Cyprus into the E.U. The dynamic effects of integration were examined using an ex-ante model. The results found by the application of this model suggest that the accession of the ten counties in the EU would have mixed effects in different sectors of the region. The sector that would benefit the most from integration is manufacture of pulp, paper and paper products. Other sectors expected to exhibit positive integration effects are the following: mining and quarrying sector, tanning, dressing of leather; manufacture of luggage, manufacture of medical, precision and optical instruments, watches and clocks, manufacture of furniture, manufacture of chemicals and chemical products and publishing, printing, reproduction of recorded media, for which the total product of the region is expected to decrease.
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