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30 years of East-West integration in Europe: reflections on what we have learned and on challenges ahead

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  • Michael Landesmann

Abstract

This paper gives an overview of lessons learned from 30 years of experience of East-West integration in Europe. It covers issues related to the economics of transition of the Central, Eastern and Southeastern European (CESEE) economies after 1989, the relatively fast processes of institutional and economic catching-up, trade and production integration and the role of foreign direct investment (FDI). It also analyzes difficult labor market adjustments linked to structural change and changing skill demands, the strong forces leading to regional economic agglomeration and the recurrent difficulties in a range of economies in dealing with macroeconomic, particularly current account, imbalances. Finally, this contribution discusses the issues of reform reversals and political regression taking place in some CESEE countries and the political-economic analysis necessary to deal with these phenomena.

Suggested Citation

  • Michael Landesmann, 2019. "30 years of East-West integration in Europe: reflections on what we have learned and on challenges ahead," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/19, pages 29-40.
    • Handle: RePEc:onb:oenbfi:y:2019:i:q3/19:b:3
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    File URL: https://www.oenb.at/dam/jcr:36c1d685-5e31-45e9-9e7b-63afda780111/04_PB_focus_2019-Q3_screen_30%20years%20of%20East-West%20integration%20in%20Europe.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    East-West integration in Europe; Central; Eastern and Southeastern Europe; CESEE; transition experience; Eastern enlargement; trade integration; external imbalances;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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