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GTAP Resource #2501

"Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE"
by Kancs, d'Artis

In this paper we study how European integration would a¤ect the industry location and sectoral specialisation of local economies in the CEE accession countries. The theoretical framework of our study is based on the new economic geography, which allows to predict not only the post-integration specialisation patterns, but captures also other general equilibrium e¤ects, such as transition to market economy, which turn out to be highly signi?cant in the CEE. Our empirical results suggest that the CEE specialisation pattern would be distinct from the old EU member states. First, on average, the EU integration would reduce regional specialisation in CEE. Second, the bell-shaped specialisation pattern predicted by the underlying theoretical framework is inverse in CEE. A large portion of these di¤erences could be explained by CEE-speci?c processes, such as integration of the CMEA. These distortions are higher in those regions, which were more integrated in the CMEA. Our simulation results also suggest a convergence in the specialisation across the CEE regions.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2006
Created: Batta, G. (8/20/2007)
Updated: Batta, G. (8/20/2007)
Visits: 1,080
No keywords have been specified.

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