European Integration and the Common Agricultural Policy: A CGE Multi Regional Analysis

European Integration and the Common Agricultural Policy: A CGE Multi Regional Analysis

Published Jan 1997

Authors

S.E. Frandsen, C.F. Bach, P. Stephensen

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This paper studies the economic effects of integrating the Central European Countries (CECs) into the EU under alternative assumptions with respect to the CAP. This is done within a global general equilibrium model framework (GTAP) with special attention given to modelling the instruments of the CAP, the EU budget and the construction of a baseline,including the full implementation of the Uruguay Round and the 1992 CAP-reform. The study finds an important potential for increased production and exports of agricultural products from the CECs. The EU budget will increase significantly, but the macroeconomic costs for EU-15 will be limited. [author's abstract]

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