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Agrarsektor und Osterweiterung der EU im gesamtwirtschaftlichen Kontext

Agriculture and the EU Enlargement to the East)

By Martina Brockmeier, Claudia A. Herok, Petra Salamon

Abstract

This paper presents the effects of EU commission's proposal (January 2002) to include Central and Eastern European Countries (CEEC) into the EU. Based on the multi-region general equilibrium model GTAP, we first simulate the Agenda 2000 followed by the enlargement of 7 CEECs. While the effects are only minor in the EU-15 and third countries, the results clearly show increased production and prices for sectors in the CEECs with low protection prior to the enlargement. Additional implementation of direct payments further increases output, but slows down the growth of non-agricultural output. The enlargement leads to rising prices of the mobile factors capital and labor, whereas the price of land is strongly influenced by the direct payments. The expenditure of EU budget hardly varies unless direct payments and structural funds are taken into account. The implementation of direct payments will however result in significant change of the EU budget.

JEL classification: F15, Q18, O52

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