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Trade Liberalization with Eastern Nations. How Sensitive?

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  • Neven, Damien J

Abstract

This paper analyses the political economy of trade liberalization by the European Community towards Eastern nations. We identify the sectors that are both sensitive and politically effective. We find that Eastern nations may have a comparative advantage in industries that use capital and (relatively) unskilled labour intensively. We suggest that a shift in the distribution of income away from capital and labour in favour of human capital and regional distribution may drive the political economy of protection in the North of Europe. By contrast, the protection of specific factors may be the most important element in the South of Europe.

Suggested Citation

  • Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1000
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    Keywords

    Central and Eastern Europe; Political Economy; Trade Liberalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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