A Gravity Model of Net Benefits of EU Membership: The Case of Ukraine
ukraine
Journal of Economic Integration, 2010.
I develop a methodology for analysing the costs and benefits of alternative regional integration scenarios, based on a disaggregated gravity equation, and apply it to the 2004 EU enlargement from Ukraine’s perspective — a country left outside the expanding bloc. This lens makes it possible to estimate the cost of non-integration: trade and investment diverted away from Ukraine, and forgone opportunities to carry out structural changes in the Ukrainian economy that EU accession would have forced or accelerated.
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I develop a methodology for analysing the costs and benefits of alternative regional integration scenarios, based on a disaggregated gravity equation, and apply it to the 2004 EU enlargement from Ukraine’s perspective — a country left outside the expanding bloc. This lens makes it possible to estimate the cost of non-integration: trade and investment diverted away from Ukraine, and forgone opportunities to carry out structural changes in the Ukrainian economy that EU accession would have forced or accelerated.
I develop a methodology for analysing the costs and benefits of alternative regional integration scenarios, based on a disaggregated gravity equation, and apply it to the 2004 EU enlargement from Ukraine’s perspective — a country left outside the expanding bloc. This lens makes it possible to estimate the cost of non-integration: trade and investment diverted away from Ukraine, and forgone opportunities to carry out structural changes in the Ukrainian economy that EU accession would have forced or accelerated.
Published in: Journal of Economic Integration, 2010.