EIZ Working Papers, No. 5, 2007.
Preliminary communication
The Economic Effects of Croatia's Accession to the EU
Arjan Lejour
Andrea Mervar
Gerard Verweij
Abstract
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.
Keywords
regional economic integration; general equilibrium model; gravity equations; institutional reform; Croatia
Hrčak ID:
71595
URI
Publication date:
15.12.2007.
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