Economic Costs And Benefits Of The Eu Enlargement: The Impact On The Eu And Seec’s

Economic Costs And Benefits Of The Eu Enlargement: The Impact On The Eu And Seec’s

Kurtagić , Haris

The South-eastern enlargement of the European Union will be the sixth enlargement since establishing the European Community in 1957. The research uses the Gravity model, and measures the factors that have an influence on trade. The Gravity model involves coefficients that explain the pattern of trade with GDP, geographical distance, population, and several dummy variables. Trade that is explained by Gravity model includes two regions, EU-15 (inclusive Bulgaria and Romania) and SEEC’s. The reason why Bulgaria and Romania are included, even if they are part of the SEEC’s, is to acquire as accurate pattern of trade as possible. Comparing the data from 2010, the gravity model describes trade flows between 23 countries. Thus, the purpose of this study is to analyze trade flows between two regions. Taking into consideration the costs of enlargement, this research examines the effects of the trade, its significance on the development of SEEC’s after enlargement, well-being of countries that are not part of the EU, as well as it offers a solution for the South-east European countries. Therefore, the solution that this research proposes is a model based on creation of the Balkan Union. Keywords: EU-Enlargement, Gravity model, South-eastern Europe, European union, Trade flows.

Conference or Workshop Item
PeerReviewed

2012-05-31

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