This article presents the results of an analysis of the economic consequences for Denmark of the enlargement of the European Union.
Artiklen er udgivet i Nationaløkonomisk Tidsskrift 140 (2002): 252-274.
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This article presents the results of an analysis of the economic consequences for Denmark of the enlargement of the European Union. Within an applied general equilibrium framework, the effects of the enlargement are quantified with respect to macro economy, production structure and welfare. The relative importance of several elements of the enlargement is illustrated. Specifically, we address the merits of an enlarged single market, repercussions to Danish receipts of transfers from EU funds, enhanced growth in the accession countries, and finally increased immigration of labour. The fully specified enlargement (excluding increased immigration) is demonstrated to give rise to a small long run increase in the domestic level of activity of 0.8 percent and moderate welfare gains amounting to 1.27 percent of 1998 GDP.