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Preliminary communication

The Economic Effects of Croatia's Accession to the EU

Arjan Lejour
Andrea Mervar
Gerard Verweij

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page 5-32

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We explore the economic implications of Croatia's possible accession to the European Union. We focus on two main changes associated with the EU-membership: accession to the internal European Market and institutional reforms in Croatia triggered by the EUmembership. GDP per capita in Croatia is estimated to rise by about 1.1 percent as a result of accession to the internal market. In particular the textile and wearing apparel sectors expand. If Croatia succeeds in reforming its domestic institutions in response to the EU-membership, income levels in Croatia could increase even more. In particular, tentative estimates suggest that GDP per capita in Croatia could even rise by additional 8 percent. Overall, the macroeconomic implications for the existing EU countries are negligible.


regional economic integration; general equilibrium model; gravity equations; institutional reform; Croatia

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Article data in other languages: croatian

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