Does the opening of Central and Eastern Europe threaten employment in the west?

Author(s): Abraham, Filip; Konings, Jozef

About this Entry
Abstract The opening p of Central and Eastern Europe posed a profound economic challenge for the European Union. Virtually overnight EU countries were confronted with a group of neighboring countries with structurally very different economic conditions. Most of the policy concerns relate to nemployment. Eastern Europe represents a large reservoir of low wage labor in the EU's backyard. There is a concern that low wage import competition from those countries may result in job losses in EU member states. Alternatively, EU companies may close factories at home and move some of their operations to the Central and Eastern European Countries (CEEC). Finally, the prospect looms of a massive flow from the CEEC to Western Europe, although so far this migration has failed to materialize. The effects of integration with the CEEC are investigated. The way in which the enhanced integration can take the form of increased labor mobility, more trade and an increase in multinational operations is discussed. The employment consequences of those adjustment mechanisms are analyzed and the empirical literature on the subject is surveyed.
Publication Title The world economy
Publisher Blackwell
Publication Date 1999
URIs http://www.econis.eu/PPNSET?PPN=271197455
http://onlinelibrary.wiley.com/doi/10.1111/1467-9701.00218/abstract
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=SerialsSolutions&SrcApp=Summon&KeyUT=000080800600007&DestLinkType=FullRecord&DestApp=WOS
http://search.proquest.com/docview/233192008
Keywords Analysis
BUSINESS
BUSINESS, FINANCE
CONTEMPORARY EUROPE
Central Europe
Competition
E. Europe
EASTERN EUROPE
ECONOMICS
East Europe
East-West Relations
Eastern Europe
Economic Policy
Economic policy
Economic theory
Economics
Employment
Employment, Unemployment, Wages, Intergenerational Income Distribution, Aggregate Human Capital (E24)
Europe
Europe, East
European Union
European integration
INTEGRATION
INTERNATIONAL RELATIONS
Integration
Labor market
Labour costs
Labour market
Labour mobility
Liberalization
Multinational corporations
Open economies
Regression analysis
Socialist Systems and Transitional Economies: Performance and Prospects (P27)
Structural adjustment
Studies
TRADE
Trade and Labor Market Interactions (F16)
Trade relations
Transition economies
Unemployment
article
View Raw JSON