Open AccessThe Role of Transport in Catching Up of New Member States
Author(s) -
Szilágyi Balázs
Publication year - 2021
Publication title -
európai tükör
Language(s) - English
Resource type - Journals
eISSN - 2560-287X
pISSN - 1416-6151
DOI - 10.32559/et.2021.1.6
Subject(s) - lagging , european union , member states , investment (military) , productivity , business , international economics , economics , welfare , international trade , economic policy , market economy , economic growth , political science , medicine , pathology , politics , law
New members joined the European Union in 2004 in the hope of catching up. One of the fields where new members are lagging is transport. After joining the EU, investments in transport infrastructure and transport equipment have risen remarkably, mainly due to EU funding. At the same time, GDP growth of new members has exceeded the EU average. This paper examines the connection between investment in transport and economic growth in the European Union focusing on the group of its Central and Eastern European new members. Direct effects of investments, indirect effects on productivity and welfare, as well as crowding in effects on further investments are considered. This paper aims to identify issues for further research and to give an outlook for the decade of the 2020s.