European Parliament Library

Macroeconomic Effects of EU Transfers in New Member States

Abstract
Large inflows from the European Union to the New Member States are likely to significantlyimpact macroeconomic outcomes. In this paper, we use the IMF's Global Integrated Monetaryand Fiscal model (GIMF) to analyze the impact of the transfers and show the conditionsunder which they would help speed up convergence. We find that the EU funds need to bedirected predominantly to investment rather than to income support and that to bestaccompany the EU fund inflows, the policy-mix would need to combine counter-cyclicalpolicy with a strong commitment to the existing monetary regime
Table Of Contents
Intro -- Contents -- I. Introduction -- II. Review of the Literature -- III. The Model -- IV. Channels for EU Funds to Recipient Countries -- V. Combining the Channels: What do Current Plans Imply for the Macro Economy -- VI. Four Lessons for Policy-Makers -- VII. Conclusion -- References -- Figures -- 1. Convergence Scenario (baseline for shocks), 2003-40 -- 2. EU Transfers to Households' Income Support -- 5. EU Transfers to Public Infrastructure Investment -- 6. EU Transfers to Private Investment -- 2. Average EU Funds Spending -- 7. Actual Plans for EU Transfers -- 8. Role of a Pro-Cyclical Policy on the Impact of EU Funds, Comparison with the Baseline Scenario of Counter-Cyclical Fiscal Policy -- Tables -- 1. Selected Calibration Parameters -- 2. Change in Welfare in Each of the Scenarios -- 3. Ratio of Net Present Value of GDP Gains to NPV of EU Funds Disbursement -- Appendices -- I. EU Funds: What is in the Offing? -- II. Modifications to GIMF -- III. List of Parameters Used for the Calibration of the Model -- Appendix Figures -- 1. Average EU Funds Spending -- 2. EU Funds Payments and Relative GDP per Capita -- 3a. Central Europe: EU Funds Spending, 2004-15 -- 3b. Baltics: EU Funds Spending, 2004-15 -- 4a. EU Fund Transfer Shock, 2003-40 -- 4b. EU Fund Transfer Shock, 2003-40 -- 4c. EU Fund Transfer Shock, 2003-40 -- 4d. EU Fund Transfer Shock, 2003-40 -- 5a. IT Countries: EU Fund Transfer Shock, 2003-40 -- 5b. IT Countries: EU Fund Transfer Shock, 2003-40 -- 5c. IT Countries: EU Fund Transfer Shock, 2003-40 -- 5d. IT Countries: EU Fund Transfer Shock, 2003-40 -- 6a. FE Countries: EU Fund Transfer Shock, 2003-40 -- 6b. FE Countries: EU Fund Transfer Shock, 2003-40 -- 6c. FE Countries: EU Fund Transfer Shock, 2003-40 -- 6d. FE Countries: EU Fund Transfer Shock, 2003-40
Language
eng
Literary Form
non fiction
Edition
1st ed.
Note
Bibliographic Level Mode of Issuance: Monograph
Physical Description
1 online resource (59 pages), illustrations.
Specific Material Designation
remote
Form Of Item
online
Isbn
9786612841743

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