Implications of the European economic integration on the centrally-planned economies
Summary :
Table of Contents
- Abstract.
- Introduction.
- The Eastern enlargement of the European Union.
- 1.1 The European Union enlargement.
- The Theoretical Background of Economic Integration
- Levels of Economic Integration.
- Objectives of Economic Integration.
- Cases for Economic Integration.
- Cases against Economic Integration.
- European Union and Economic Integration.
- Empirical Evidence.
- The political dimension of Economic Integration.
- Conclusions.
Abstract
Former Communist countries joined the EU in 2004 and in 2007. Having different features in their surrounding region as compared to the older EU members, centrally-planned economies were - and still are - challenged to alter their political and economic environment in order to align with the EU membership. This paper identifies the implications of economic integration on centrally planned economies. Despite cases against, the net effect of economic integration for consumers and citizens is positive because they are offered a greater variety of products at lower costs and prices. Ex-Communist countries become a pole for foreign direct investment as a result of trade liberalization and market openness. The political dimension of reform policy is vital.
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