The Implications of EU Enlargement for the Egyptian Economy

Abstract:
This paper examines the implications of the recent EU enlargement for the Egyptian economy with regards to trade, capital inflows, and labor migration. The novelty of the study lies in that it analyzes all three dimensions of the economic relations, whereas the majority of other studies focus mainly on trade or investment, and only briefly address the issue of labor. The paper finds that although the enlargement will not likely lead to significant changes in the short run, its impact in the medium to long runs depends on Egypt’s ability to enhance the pace and extent of economic reforms in order to minimize the cost and maximize the benefits of the EU enlargement.