Capital mobility and EU enlargement

Capital Mobility and EU Enlargement. - The membership of the Eastern Europe an transition economies in the EU would require inter alia the full liberal ization of their capital flows. Using the correlation between domestic savi ng and investment, this paper provides empirical evidence of the openness w ith respect to foreign capital that the accession states have attained so f ar. A comparison with the southern members of the EU shows that the countri es under review have reached a similar degree of integration in quantitativ e terms. Yet, further adjustment in qualitative terms, i.e., in the structu re of capital flows,can be expected as the process of accession proceeds. J EL no. F21, F32, F36.