Economic Integration, Spatial Interaction and Labour Income Share: Evidence from the EU-13 Countries and the UK

Author(s):  
Orkun Çelik ◽  
Metin Karadağ
2018 ◽  
Vol 54 (2) ◽  
pp. 99-109
Author(s):  
Jakub Borowski ◽  
Jakub Olipra ◽  
Paweł Błaszyński

Abstract The decision of the United Kingdom (UK) to leave the European Union (EU) is unprecedented, especially considering the recent trend in the global economy toward economic integration. There is a multitude of research concerning the implications of economic integration; however, research in the field of disintegration is scarce. Brexit serves as an interesting case study to investigate the effects of economic disintegration. The implications for trade are especially fascinating as trade liberalization is one of the most important benefits of economic integration. Existing studies focus mainly on Brexit’s impact on the UK’s exports and imports, while less attention has been paid to Brexit’s effects on the trade of other countries. The main objective of our research is to estimate Brexit’s influence on Polish exports. We present several possible scenarios of future trade relations between the UK and the EU and assume that, at least in the nearest-future post-Brexit scenario, trade under the World Trade Organization rules is most likely. This will result in the imposition of tariffs on trade between the UK and the EU members, including Poland. In our research, we used the real exchange rate of the Polish zloty against the British pound as a proxy for the changes in price competitiveness of Polish exports due to the imposition of tariffs. We find that in the first year after Brexit, the dynamics of Polish exports to the UK will decrease due to the imposition of customs duties by 1.3 percentage points (pp) and by 0.1 pp when it comes to total Polish exports. This paper contributes to the discussion on the effects of disintegration on trade. We propose a new method for assessing changes in trade volume due to increase of trade barriers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Orkun Çelik

PurposeThe author investigates the effects of human capital on labor income share in the 15 sectors of the European Union (EU)-13 countries and the United Kingdom (UK) over the period 2008–2015.Design/methodology/approachThe author employs pooled ordinary least squares (OLS) estimation with panel data, using the EU KLEMS database.FindingsThe results show that when education level increases, labor income share increases and gender-based labor income share differentials decrease. Return to education is higher in qualitative sectors in contrast with the other sectors. Moreover, there are gender-based labor income share differentials at the sectoral level. These differentials are higher in nonqualitative sectors, while they are relatively lower in qualitative sectors.Research limitations/implicationsThe biggest limitation of the study is that the data range cannot be expanded because of the database. The author is of opinion that the empirical findings will guide to policy makers in terms of wage setting.Originality/valueThe expected contribution of this study to the literature is to investigate the effect of human capital on labor income share at the sectoral level for the EU-13 countries and the UK. As far as the author knows, there is no study which investigates this topic at the sectoral level such a comprehensive, in the literature.


EU Law ◽  
2020 ◽  
pp. 663-696
Author(s):  
Paul Craig ◽  
Gráinne de Búrca

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing students with a stand-alone resource. The single market is central to the EU and is still its principal economic rationale. This chapter discusses the forms and techniques of economic integration, the limits of integration prior to 1986, and the subsequent steps taken to complete the single market. There is both a substantive and an institutional dimension to this story. In substantive terms, it is important to understand the economic dimension to the single market. In institutional terms, a subtle mix of legislative, administrative, and judicial initiatives has furthered evolution of the single market. The UK version contains a further section analysing the general structure of the discourse concerning future trade relations between the EU and the UK post-Brexit.


Author(s):  
Anna Małgorzta Niżnik

International economic integration, or globalisation, has a long history, dating from the Medieval period; the establishment and later extension of the European Union is part of this process. It is argued that EU membership has brought undoubted advantages, such as support for agriculture and for regions of high unemployment, and the removal of tariffs against Polish goods, but the huge changes experienced by Poland date from the introduction of the market economy in 1989, not from EU membership. The market economy is synonymous with globalisation, which is so powerful that countries are forced to adapt to it, and make changes within this framework. There have been changes since 2004, the most important of which is mass emigration to the UK, Ireland, Germany and Spain, but it is thought that this movement is only short-term, since most Poles intend to return to Poland, having accumulated capital. It is too soon to be able to establish the full impact of EU membership. It seems that a much longer period must be allowed to elapse before it is possible to assess the value of EU membership to Poland. But in any case, it is clear that Poland has become part of the globalisation and economic integration process – something that will be emphasised owing to membership of the EU.


EU Law ◽  
2020 ◽  
pp. 641-672
Author(s):  
Paul Craig ◽  
Gráinne de Búrca

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing students with a stand-alone resource. The single market is central to the EU and is still its principal economic rationale. This chapter discusses the forms and techniques of economic integration, the limits of integration prior to 1986, and the subsequent steps taken to complete the single market. There is both a substantive and an institutional dimension to this story. In substantive terms, it is important to understand the economic dimension to the single market. In institutional terms, a subtle mix of legislative, administrative, and judicial initiatives has furthered evolution of the single market. The UK version contains a further section analysing the general structure of the discourse concerning future trade relations between the EU and the UK post-Brexit.


2017 ◽  
pp. 80-90
Author(s):  
Kateryna Slyusarenko ◽  
Maryna Sadovenko

Introduction. Reform of the social policy is one of the most important issues not only for individual the EU Member States but for the EU as a whole. The economic integration in the absence of adequate social protection means the growth of inequality, insecurity and marginalization among EU citizens. Areas of solving economic and social problems, which worsened in recent years because of military action in Syria and Ukraine and exit of the UK out of the EU (Brexit), should be aimed at preserving the EU single market, reforming the labour market and social policies. Purpose. The article aims to assess the trends and problems of implementation of government social policy and social protection in the EU and to identify areas of social policy reforming. Results. The classification of social policy models has been proposed. Analysis of current trends in social protection has been carried out. The spending for social protection in the EU has been estimated. On the basis of research the problems in EU social policy have been outlined. The ways of its reforming have been determined.


Author(s):  
Dieter Grimm

This chapter examines the democratic costs of constitutionalization by focusing on the European case. It first considers the interdependence of democracy and constitutionalism before discussing how constitutionalization can put democracy at risk. It then explores the tension between democracy and fundamental rights, the constitutionalization of the European treaties, and the European Court of Justice’s (ECJ) two separate judgments regarding the relationship between European law and national law. It also assesses the impact of the ECJ’s jurisprudence on democracy, especially in the area of economic integration. The chapter argues that the legitimacy problem the EU faces is caused in part by over-constitutionalization and that the remedy to this problem is re-politicization of decisions with significant political implications.


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