Title: New transition member states of the European Union: (how) do they respond to current changes in the global economy?

Authors: Aljaž Kunčič; Staša Tkalec

Addresses: UN ESCWA, P.O. Box 11-8576, Riad El-Solh 1107-2813, Lebanon ' Faculty of Social Sciences, University of Ljubljana, Beethovnova ulica 12, 1000 Ljubljana, Slovenia

Abstract: This article identifies and examines changes that are presently taking place in the global economy (the growing importance of new fast growing markets and the financial crisis). Special attention is paid to the response of new transition member states of the European Union to these changes, as well as to the discrepancy between them and old European Union members. It furthermore investigates the possibility of increased economic cooperation with currently fastest growing markets as a structural measure for growth, as well as potentially for overcoming the present financial crisis. We find important and consistent differences between these country groups, both in terms of their levels and trends of economic cooperation with the growth markets. Moreover, we find that stronger cooperation with the growth markets is associated with higher economic growth in the pre-crisis years, but it does not shield countries from the effects of the crisis.

Keywords: globalisation; financial crisis; growth markets; European Union; EU transition member states; BRICs; growth markets; trade; foreign direct investment; FDI; internationalisation; economic growth; economic cooperation.

DOI: 10.1504/IJSE.2016.073682

International Journal of Sustainable Economy, 2016 Vol.8 No.1, pp.1 - 17

Received: 05 Feb 2015
Accepted: 28 Jul 2015

Published online: 15 Dec 2015 *

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