Macroeconomic impacts of European Union membership of Central and Eastern European economies

Warwick McKibbin, Reinhard Neck, Gottfried Haber

    Research output: Contribution to journalArticle

    Abstract

    Macroeconomic Impacts of European Union Membership of Central and Eastern European Economies REINHARD NECK,* GOTTFRIED HABER,* AND WARWICK J. MCKIBBIN** This paper examines the impact of an eastern enlargement of the European Union. This is modeled as an increase in total factor productivity and a decrease in the risk premium for the central and eastern European countries (CEECs). In particular, a multicountry model of the world economy is used to assess the direct effects and spillovers of these changes. Inflation targeting for the euro zone by the European Central Bank and alternative scenarios with respect to fiscal policy behavior in the CEECs are considered. According to these simulations, productivity effects are stronger than risk premium effects, and spillovers are small. (JEL E6, F4,04, CO).
    Original languageEnglish
    Pages (from-to)71-82
    JournalAtlantic Economic Journal
    Volume28
    Issue number1
    Publication statusPublished - 2000

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