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Macroeconomic impact of Eastern enlargement on Germany and UK: evidence from a CGE model

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  • Timo Baas
  • Herbert Br�cker

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.

Suggested Citation

  • Timo Baas & Herbert Br�cker, 2010. "Macroeconomic impact of Eastern enlargement on Germany and UK: evidence from a CGE model," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 125-128, January.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:2:p:125-128
    DOI: 10.1080/13504850701720098
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    1. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83, World Scientific Publishing Co. Pte. Ltd..
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    2. Malte Sandner & Pia Wassmann, 2018. "The Effect of Changes in Border Regimes on Border Regions Crime Rates: Evidence from the Schengen Treaty," Kyklos, Wiley Blackwell, vol. 71(3), pages 482-506, August.
    3. LSE Enterprise,, 2011. "Study on the impact of the single market on cohesion: implications for cohesion policy, growth and competitiveness," LSE Research Online Documents on Economics 42840, London School of Economics and Political Science, LSE Library.
    4. Wassmann, Pia, 2016. "Do Open Borders Tempt a Saint? Evidence from Schengen on Crime Rates in German Border Regions," VfS Annual Conference 2016 (Augsburg): Demographic Change 145878, Verein für Socialpolitik / German Economic Association.
    5. Wassmann, Pia, 2016. "The Economic Effects of the EU Eastern Enlargement on Border Regions in the Old Member States," Hannover Economic Papers (HEP) dp-582, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    6. Wiedner, Jonas & Giesecke, Johannes, 2022. "Immigrant Men’s Economic Adaptation in Changing Labor Markets: Why Gaps between Turkish and German Men Expanded, 1976–2015," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 56(1), pages 176-205.
    7. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," RF Berlin - CReAM Discussion Paper Series 1104, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    8. Andrea Grabmayer & Andrea Hartmann & Maria Thalhammer, 2009. "Labour Mobility within the EU in the Context of Enlargement and the Functioning of the Transitional Arrangements," WIFO Studies, WIFO, number 35641.
    9. Grega Ferenc & Matteo Neufing, 2024. "20 Jahre EU-Osterweiterung: Der Weg zum neuen vereinten Europa," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 31(02), pages 03-08, April.
    10. Christian Ochsner & Pia Wassmann, 2016. "Die ökonomischen Effekte der EU-Osterweiterung: Profitierten die Grenzregionen der alten Mitgliedsstaaten?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(05), pages 24-31, October.
    11. Baas, Timo & Brücker, Herbert, 2008. "Macroeconomic consequences of migration diversion : a CGE simulation for Germany and the UK," IAB-Discussion Paper 200803, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Peter Huber & Gabriele Tondl, 2012. "Migration and regional convergence in the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 439-460, November.
    13. Pia Wassmann, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," ERSA conference papers ersa15p774, European Regional Science Association.
    14. Wassmann, Pia, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113028, Verein für Socialpolitik / German Economic Association.
    15. Bonin, Holger & Krause-Pilatus, Annabelle & Rinne, Ulf & Brücker, Herbert, 2020. "Wirtschaftliche Effekte der EU-Arbeitskräftemobilität in den Ziel- und Herkunftsländern," IZA Research Reports 102, Institute of Labor Economics (IZA).
    16. Kangjuan Lv & Yijing Fan & Yu Cheng, 2024. "How does regional integration affect CO2 emission intensity? A natural experiment based on the expansion of the Yangtze River Delta, China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(2), pages 493-519, August.
    17. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    18. Weimin Zhang & Wangrong Ma & Qiwei Chen, 2022. "Does Regional Development Policy Promote Industrial Structure Upgrading? Evidence from the Yangtze River Delta in China," Sustainability, MDPI, vol. 14(13), pages 1-21, July.
    19. Pia Wassmann, 2016. "Do open borders tempt a saint? Evidence from Schengen on crime rates in German border regions," ERSA conference papers ersa16p539, European Regional Science Association.
    20. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    21. Elshof, Gero & Luckmann, Jonas & Siddig, Khalid, 2022. "A 2018 Social Accounting Matrix for Germany depicting waste and recycling accounts for a circular economy," Working Paper Series 320879, Humboldt University Berlin, Department of Agricultural Economics.
    22. Ferenc Grega & Ragnitz Joachim, 2024. "„In Vielfalt vereint“ – Die wirtschaftliche Lage in den Beitrittsländern nach 20 Jahren in der EU," Wirtschaftsdienst, Sciendo, vol. 104(6), pages 368-371.

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