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

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.