Eastern enlargement: analysis of development processes in the EU15 in the context of creative destruction
DOI:
https://doi.org/10.12775/EiP.2021.039Keywords
creative destruction, eastern enlargement, economic developmentAbstract
Motivation: Studies on the impact of the Eastern enlargement on economies of the EU15 indicate that the new member states could not be a significant engine for development processes. However, this does not exclude that the Eastern enlargement and acceding countries could have a significant impact on the mechanisms of the development of the EU15. If we consider Eastern enlargement as a Schumpeterian innovation, its long-term effects should be evident in the way creative destruction affects economic development.
Aim: The aim of the study was to determine the impact of the Eastern enlargement on the economic development of the EU15 in the context of creative destruction. In particular, the aim of the empirical analyzes was to determine whether and to what extent the enlargement of the EU was a factor modifying the impact of creative destruction on the development of “old” members countries, and to identify the role of the new member states in these processes.
Results: Econometric analysis confirmed that creative destruction influenced economic development in the EU15, and that Eastern enlargement was a factor modifying the relationship between creation, destruction, and the rate of change of GDP per capita. The Eastern enlargement has mobilized two opposing forces. The “internal” force resulting from market selection in the EU15, which after 2004 became an active component of creative destruction, contributing however to a lower rate of change in GDP per capita. The “external” force, related to the mechanism of transmission of impulses within the grouping: synergy effects from destruction in new member countries were a catalyst for the development processes of the EU15, and synergy effects from creation were inhibitors for these processes. In the context of our research the “development leaders” can be considered the largest beneficiaries of Eastern enlargement in the EU15.
References
Abdi, H., & Molin, P. (2007). Lilliefors/Van Soest’s test of normality. In N.J. Salkind (Ed.), Encyclopedia of measurement and statistics (pp. 1–10). SAGE.
Andersen, E.S. (2004). Evolutionary econometrics: from Joseph Schumpeter’s failed econometrics to George Price’s general evometrics and beyond [Paper presentation]. The Third Workshop on the Economic Transformation of Europe (ETE). Sophia-Antipolis, France.
Antimiani, A., & Costantini, V. (2010). Trade performances and technology in the enlarged European Union. Journal of Economic Studies, 40(3), 355–389. https://doi.org/10.1108/01443581311283961.
Baas, T., & Brücker, H. (2011). EU eastern enlargement: the benefits from integration and free labour movement. CESifo DICE Report, 9(2), 44–51.
Baldwin, R.E. (1995). The eastern enlargement of the European Union. European Economic Review, 39(3–4), 474–481. https://doi.org/10.1016/0014-2921(94)00053-3.
Baldwin, R.E., Francois, J.F., Portes, R., Rodrik, D., & Székely, I.P. (1997). The costs and benefits of eastern enlargement: the impact on the EU and central Europe. Economic Policy, 12(24), 125–176. https://doi.org/10.1111/1468-0327.00018.
Barysch, K. (2006). East versus west: the EU economy after enlargement. Retrieved 25.06.2020 from https://www.cer.eu/sites/default/files/publications/attachments/pdf/2011/essay_eastvswest_jan06-2088.pdf.
Bchir, H., Fontagné, L., & Zanghieri, P. (2003). The impact of EU enlargement on member states: a CGE approach. CEPII Working Paper, 10, 1–54.
Bernanke, B.S. (1983). On the sources of labour productivity variation in U.S. manufacturing, 1947–1980. Review of Economics and Statistics, 65(2), 214–224. https://doi.org/10.2307/1924487.
Breuss, F. (1999). Costs and benefits of EU enlargement in model simulations. IEF Working Paper, 33, 1–44.
Brück, T., Brücker, H., Engerer, H., von Hirschhausen, C., Schrooten,M., Schumacher, D., Thiessen, U., & Trabold, H. (2004). The eastern enlargement of the European Union: clear challenges, unjustified fears. Economic Bulletin, 41(6), 189–198. https://doi.org/10.1007/s10160-004-0274-x.
Curran, L., & Zignago, S. (2012). EU enlargement and the evolution of European production networks. Research in International Business and Finance, 26(2), 240–257. https://doi.org/10.1016/j.ribaf.2011.12.002.
Davidson, J.G., & MacKinnon, J.G. (1999). Foundations of econometrics. Retrieved 25.06.2020 from https://russell-davidson.arts.mcgill.ca/e468/Ectsbook.pdf.
European Commission. (2001). The economic impact of enlargement. Retrieved 15.06.2020 from https://ec.europa.eu/archives/economy_finance/publications/archives/pdf/publication1583_en.pdf.
European Commission. (2006). Enlargement: two years after: an economic evaluation. Retrieved 15.06.2020 from https://ec.europa.eu/economy_finance/publications/pages/publication7548_en.pdf.
European Commission. (2009). Five years of an enlarged EU: economic achievement and challenges. Retrieved 15.06.2020 from https://ec.europa.eu/economy_finance/publications/pages/publication14078_en.pdf.
Fagerberg, J. (2003). Schumpeter and the revival of evolutionary economics: an appraisal of the literature. Journal of Evolutionary Economics, 13(2), 125–159. https://doi.org/10.1007/s00191-003-0144-1.
Godziszewski, B. (2004). Globalizacja a mikroekonomiczne czynniki wzrostu gospodarczego. In M. Haffer, & W. Karaszewski (Eds.), Czynniki wzrostu gospodarczego (pp. 279–296). Uniwersytet Mikołaja Kopernika w Toruniu.
Greene, W.H. (2003). Econometric analysis. Prentice Hall.
Havlik, P. (2001). EU enlargement: economic impacts on Austria, the Czech Republic, Hungary, Poland, Slovakia and Slovenia. WIIW Research Report, 280, 1–19.
Ionescu, R.-V. (2013). EU’s enlargement vs global crisis. Acta Inuversitatis Danunius: Oeconomica, 9(4), 319–331.
Kennedy, P. (1998). A guide to econometrics. MIT Press.
Kohler, W. (2004). Eastern enlargement of the EU: a comprehensive welfare assessment. Journal of Policy Modeling, 26(7), 865–888. https://doi.org/10.1016/j.jpolmod.2004.08.006.
Kozłowska, A. (2010). Ewolucja struktur gospodarczych w świetle Schumpeterowskiej koncepcji kreatywnej destrukcji. Uniwersytet Ekonomiczny w Poznaniu.
Kozłowska, A., & Szczepkowska-Flis, A. (2014a). Aplikacja koncepcji kreatywnej destrukcji do analizy procesów rozwojowych w Unii Europejskiej. Studia i Prace Wydziału Nauk Ekonomicznych i Zarządzania Uniwersytetu Szczecińskiego, 35(2), 109–124.
Kozłowska, A., & Szczepkowska-Flis, A. (2014b). Rola integracji gospodarczej w kształtowaniu procesów rozwojowych: analiza w kontekście kreatywnej destrukcji. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 347, 262–271. https://doi.org/10.15611/pn.2014.347.24.
Lammers, K. (2004). How will the enlargement affect the old members of the European Union. Intereconomics, 39(3), 132–141. https://doi.org/10.1007/bf02933580.
Lejour, A.M., & De Mooij, R.A., & Nahuis, R. (2001). EU enlargement: economic implications for countries and industries. CESifo Working Paper, 585, 1–32.
Midera, A. (2004). Koncepcje międzynarodowej integracji gospodarczej: próba klasyfikacji. Acta Universitatis Lodziensis: Folia Oeconomica, 180, 195–208.
Montgomery, E., & Wascher, W. (1988). Creative destruction and the behaviour of productivity over the business cycle. Review of Economics and Statistics, 70(1), 168–172. https://doi.org/10.2307/1928167.
Nahuis, R. (2004). One size fits all: accession to the internal market; an industry level assessment of EU enlargement. Journal of Policy Modeling, 26(5), 571–586. https://doi.org/10.1016/j.jpolmod.2004.04.013.
Nuroglu, E., & Kurtagić, H. (2012). Costs and benefits of the EU enlargement: the impact on the EU and SEE countries. Journal of Economic and Social Studies, 2(2), 41–65. https://doi.org/10.14706/jecoss11223.
Pawlas, I. (2016). Economic picture of the enlarged European Union in the light of taxonomic research. In Vopava, J., Douda, V., Kratochvil, R., & Konecki, M. (Eds.), Proceedings of MAC–EMM 2016 (pp. 75–82). MAC Prague consulting.
Prisecaru, P. (2017). Do we have or need a two speed Europe? Academic Journal of Economic Studies, 3(3), 54–61.
Proniewski, M., & Zielińska, J.B. (2019). Innovative potential of the European Union’s member states in 2017. European Research Studies Journal, 22(4), 49–59. https://doi.org/10.35808/ersj/1496.
Razić, S., & Kasumović, M. (2019). Macroeconomic stability of new member states of the European Union: fifth enlargement. Theoretical and Applied Economics, 26(618), 23–36.
Riedel, R. (2018). Zróżnicowana integracja w Europie: źródła, mechanizmy, konsekwencje. Studia Ekonomiczne: Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 352, 213–222.
Rojec, M., & Damijan, J.P. (2008). Relocation via foreign direct investment from old to new EU member states: scale and structural dimension of the process. Structural Change and Economic Dynamics, 19(1), 53–65. https://doi.org/10.1016/j.strueco.2007.11.005.
RWI. (2000). Impact of the enlargement of the European Union on small and medium-sized enterprises in the Union. Retrieved 23.06.2020 from http://aei.pitt.edu/34856/1/A914.pdf.
Schumpeter, J.A. (1939). Business cycles: a theoretical, historical, and statistical analysis of the capitalist process. McGraw-Hill.
Schumpeter, J.A. (1960). Teoria rozwoju gospodarczego. PWN.
Szczepkowska-Flis, A. & Kozłowska, A. (2020). Europa dwóch prędkości: ocena w kontekście kreatywnej destrukcji. In M. Geise, E. Dziawgo, & A. Uziębło (Eds.), Stan i perspektywy rozwojowe Unii Europejskiej (pp. 97–118). Uniwersytet Kazimierza Wielkiego w Bydgoszczy.
Vahalík, B., & Staníčková, M. (2014). Comparison of regional competitiveness index after EU enlargement in 2013. Scientific Papers of the University of Pardubice: Series D: Faculty of Economics & Administration, 21(31), 83–92.
Verheugen, G. (2002). Entering the final stage. [Speech]. Retrieved 25.06.2020 from https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_02_602.
Wooldridge, J.M. (2001). Econometric analysis of cross section and panel data. MIT Press.
Wooldridge, J.M. (2002). Introductory econometrics: a modern approach. South-Western Educational Publishing.
Zielińska-Głębocka, A. (1999). Dynamika Unii Europejskiej w świetle teorii integracji. Studia Europejskie, 3, 11–32.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Agnieszka Szczepkowska-Flis, Anna Kozłowska
![Creative Commons License](http://i.creativecommons.org/l/by-nd/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Stats
Number of views and downloads: 408
Number of citations: 0