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Costs and Benefits of the EU Enlargement: The Impact on the EU and SEE Countries

Author

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  • Nuroğlu, Elif
  • Kurtagic, Haris

Abstract

The south-eastern enlargement of the European Union will be the sixth enlargement since the establishment of the European Community in 1957. This research uses the gravity model to analyze the factors that have an influence on trade flows between the EU and South-east European Countries. The Gravity model explains patterns of trade with GDP, geographical distance and several dummy variables. Using the data from 2010, the gravity model analyzes trade flows between 23 countries from both the EU and South-eastern European Countries. Taking into consideration the costs of enlargement, this paper examines the possible effects of enlargement on trade flows, and its impact on the development of SEEC’s. Moreover, it offers a solution for the South-east European Countries which is the possibility to create the Balkan Union.

Suggested Citation

  • Nuroğlu, Elif & Kurtagic, Haris, 2012. "Costs and Benefits of the EU Enlargement: The Impact on the EU and SEE Countries," MPRA Paper 54741, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54741
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    References listed on IDEAS

    as
    1. Marco Montanari, 2005. "EU Trade with the Balkans : Large Room for Growth?," Eastern European Economics, Taylor & Francis Journals, vol. 43(1), pages 59-81, January.
    2. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(24), pages 125-176.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    EU-Enlargement; Gravity model; South-eastern Europe; European Union; trade flows;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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