Community Research and Development Information Service - CORDIS


EU-enlargement: The impact of East-West migration on growth and enlargement - FLOWENLA, Final Report, EUR 21603

Project ID: HPSE-CT-2001-00064


Most of the research on migration that will be induced by the EU enlargement is concerned with forecasts f aggregate migration flows. The project EU Enlargement: The impact of East "West Migration on Growth and Employment" (FLOWENLA) went beyond the aggregate research and assessed the interaction between adjustments of international trade and foreign direct investment flows with migration flows of different skill groups of workers within the enlarged European Union.
FLOWENLA combined tow major blocks of theoretical and empirical work. The theoretical work is subdivided into the theoretical analysis of the short-run transition to a new growth path and the theoretical analysis of the characteristics of the long/run growth path.
The short-run analysis emphasized relative technological developments in the Central and Eastern European countries. It supports the expectation that, even before the liberalization of the movement of workers, there will be strong technological catching-up processes in the new member countries of the union. Lags in price- and wage adjustments will lead to transitory rents that drive capital accumulation and foreign direct investment. These catching-up processes will lead to a significant reduction of incentives to migrate, for all skill groups of workers.

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