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Predicting European Enlargement Impacts: A Framework of Inter-regional General Equilibrium

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  • d’Artis Kancs

Abstract

Although the Computable General Equilibrium (CGE) model is not a new tool for analysing policy impacts, it has not gained a wide popularity in regional applications such as rural economies yet. This study demonstrates how a regional CGE model can be applied for analysing regional impacts of changing global economic conditions as well as for assessing inter-regional and inter-sectoral implications of policy changes with even limited computational resources and lacking a full range of regional economic data required by a formal CGE analysis. In the empirical analysis we have found that rural economies in the Central and Eastern European (CEE) accession countries may expect the largest welfare gains from integration into the European Union (EU) if the EU Structural Fund and CAP support measures are implemented immediately but markets are opened gradually to foreign competition.

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  • d’Artis Kancs, 2001. "Predicting European Enlargement Impacts: A Framework of Inter-regional General Equilibrium," EERI Research Paper Series EERI_RP_2001_01, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2001_01
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    More about this item

    Keywords

    CGE; EU; regional economies; economic integration;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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