The impact of the European Union enlargement on the member countries economic growth an econometric analysis

This paper assesses the impact of the overall EU- enlargement process on the EU members‟ economic growth with special attention being paid on foreign direct investments and international trade as the main drivers of EU integration. Based on Solow‟s endogenous growth model, I carried out an econometric analysis for the period 1990- 2010, separating for old and new member states as well as for the enlarged EU. The main findings of the study suggest that integration process had a positive impact on economic growth via FDI inflows for the new members and via trade augmentation for the old members.