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The German Perspective on Eastern EU Enlargement
Author(s) -
Keuschnigg Christian,
Keuschnigg Mirela,
Kohler Wilhelm
Publication year - 2001
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/1467-9701.00368
Subject(s) - german , citation , perspective (graphical) , resizing , library science , political science , law , philosophy , economics , european union , computer science , linguistics , international trade , artificial intelligence
This paper looks at Eastern enlargement ,of the ,European Union from a German ,perspective. Based on a dynamic general equilibrium model, we quantitatively investigate several key issues: What is the net burden for the government budget, taking account of Germany’s share in financ- ing enlargement? What is the net welfare effect? Which are the sectors most favorably affected? Islow skilled labor likely to be hurt? Contrary to widespread concern, Eastern enlargement is beneficial in overall welfare terms for the German economy. Furthermore, the expected expan- sionary stimulus swells the tax bases to an extent such that enlargement is largely self-financing. JEL Codes: Computable general equilibrium modeling, European integration, Eastern EU en-