The return to Europe. The reintegration of eastern Europe into the European economy

Book abstract:

This book examines the ability of the Central and South-east European economies to withstand competitive pressures on entry to the EU. These economies are still experiencing major structural problems inherited from communism and a major gap still exists between the income levels and economic structures of the accession states and the existing members of the EU. Trade relations largely involve the exchange of labour-intensive goods produced in Eastern Europe for technology-intensive goods produced in the EU.

Although the export structures of some Central European economies which have attracted foreign direct investment is improving, Romania and Bulgaria in particular have become increasingly dependent on export of labour-intensive goods since the collapse of communism. The book questions whether this will create a permanent division of labour in an enlarged EU in which some regions of Europe fail to attract investment and become dependent on the export of low-wage goods, thus having implications for European security.

The book is part of the 'Studies in Russia and East Europe' series. The series includes books on general, political, historical, economic and cultural themes relating to Russia and East Europe written or edited by members of the School of Slavonic and East European Studies, University College London, or by authors working in association with the School.

The eight chapters are: The background to Eastward enlargement; International trade theory and EU enlargement; Statistical tests and problems of measurement; East European economic relations under communism; The basic features of trade relations between the EU and the applicant states; Factor intensity and technological levels in trade in manufactured goods between the CEE-10 and the EU; Revealed specialisation and the competitiveness of the CEE economies; Conclusions: prospects for integration.

The author, Alan Smith, is Reader in East European Economics at the School of Slavonic and East European Studies, University College London. His previous books include: Challenges for Russian economic reform (editor, 1995) and Russian foreign trade in the transition (1996).