The EU Eastern Enlargement And FDI: The Implications From A Neoclassical Growth Model
- Topics:
- Foreign Direct Investment
- Tags:
- Currency & Foreign Exchange,
- European Union,
- Finance,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- University Of Alicante
- Source:
- University of Alicante
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Overview: This paper studies how the EU (European Union) Eastern enlargement can affect the economies of the old and the new EU members and the non-acceded countries in the context of a multi-country neoclassical growth model where Foreign Direct Investment (FDI) is subject to border costs. The authors assume that in the moment of the EU enlargement border costs are eliminated between the old and the new EU member states but they remain unchanged between the old EU member states and the nonacceded countries. In a calibrated version of the model, the short-run effects of the EU enlargement proved to be relatively small for all the economies considered.
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Format: PDF | Size: 657KB | Date: Nov 2005 | Pages: 38
