Baas, Timo; Brücker, Herbert:
Macroeconomic impact of eastern enlargement on Germany and UK : evidence from a CGE model
In: Applied Economic Letters, Vol. 17 (2010), No. 2, pp. 125 - 128
2010article/chapter in journal
EconomicsFaculty of Business Administration and Economics
Title:
Macroeconomic impact of eastern enlargement on Germany and UK : evidence from a CGE model
Author:
Baas, TimoUDE
LSF ID
54034
Other
connected with university
;Brücker, Herbert
Year of publication:
2010
DOI
10.1080/13504850701720098
Appears in
Applied Economic Letters
in:
Vol. 17 (2010), No. 2, pp. 125 - 128
ISSN
1466-4291 Show availability online & print

Abstract:

The Eastern enlargement of the EU is accompanied by a substantial increase in trade, capital movements and migration between the incumbent and the new member states. This article examines the effects of these trade and factor flows on Germany and United Kingdom using a CGE model which considers wage rigidities. We find that Eastern enlargement positively impact real GDP, wages and employment in both economies. The effects are substantially larger than those found in previous studies