Effects of the Enlargement of the European Union on Industry

Timeframe: Completed
Project Manager: Rickard Eriksson

The project studied the consequences of the European enlargement on the structure of industry in Europe, with a focus on Sweden. The liberalisation of trade and investments in the new Member States can affect the industry structure in several ways.

An increased specialization to industries in which countries have comparative advantages is likely, but also increased vertical specialization, where functions within an industry (e.g. production and R&D) are located to different countries.

The project also examined the effects of foreign direct investments (FDI) on growth in the new Member States, and home country employment effects from FDI.