According to difference-in-difference estimates business cycle synchronisation and similarity in sector structures between
acceding and pre-existing regions reduced after Eastern Enlargement. Results for Northern enlargement are more ambiguous.
In both enlargements, however, region pairs affected by enlargement with highly synchronised business cycles before enlargement
experienced smaller increases in business cycle synchronisation and weaker reductions of structural differences relative to
similar unaffected region pairs than region pairs with less synchronised business cycles. Similarly, affected regions that
were more similar in terms of sector structure before enlargement experienced larger reductions in structural differences
and business cycle synchronisation than similar unaffected region pairs.
Keywords:business cycle correlation, sector specialisation, EU enlargement, difference-in-difference
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik – Strukturwandel und Regionalentwicklung