How Accession to the European Union Has Affected External Trade and Foreign Direct Investment in Central European Economies
The collapse of central planning set in motion the reintegration of the Central European countries into the world economy. The European Union (EU), because of its proximity, economic weight, and policy-induced deep integration, has shaped these cou...
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| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/04/1089485/accession-european-union-affected-external-trade-foreign-direct-investment-central-european-economies http://hdl.handle.net/10986/19666 |
| Summary: | The collapse of central planning set in
motion the reintegration of the Central European countries
into the world economy. The European Union (EU), because of
its proximity, economic weight, and policy-induced deep
integration, has shaped these countries' politics, and
economics. The process of accession to the EU - which began
with the signing of the European Association Agreements in
1991 - has influenced their economic institutions, policies,
and performance. The author traces the emerging architecture
of commercial relations in Europe, and argues that the
accession process had its greatest impact on capital flows,
and later on good flows. The countries that have benefited
most from accession, are those that followed the path of
radical liberal reform. Radical liberal reform, combined
with preferential access to EU markets, attracted foreign
direct investment. The European Union provided an outlet,
initially for Central European countries'
unskilled-labor intensive products, and more recently for
skilled-labor intensive, and technology-based products.
Knowledge-intensive imports from the European Union, have
also contributed to industrial realignment in the Central
European countries. The prospect of accession, and, since
1998, unfettered access to EU markets for industrial
products, has given a boost to multinationals, relocating
production in these countries. |
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