The European Union: implications for developing countries

Examines the ramifications of the ongoing politico‐economic unification taking place in Europe. Viner′s theoretical contribution in analysing customs unions is applied to the European Union (EU) in order to determine the implications of the EU on developing countries. Additionally, examines the changes taking place in the formerly planned economies of Central and Eastern Europe in an effort to understand the diversion effect faced by developing countries better. Finally,identifies different levels of competition: competition within the EU and outside the EU, competition between EU and non‐EU firms, and competition among non‐EU actors.