Publication: “Benefits and Costs of DCFTA: Evaluation of the Impact on Georgia, Moldova and Ukraine”

On December 2016 has been launched the Joint Working Paper on Benefits and Costs of DCFTA: Evaluation of the Impact on Georgia, Moldova and Ukraine. The report was prepared by the Vienna Institute for International Economic Studies in cooperation with and at the initiative of Stefani Weiss, Bertelsmann Stiftung.

The study provides an impact evaluation of the DCFTA implementation in Georgia, Moldova and Ukraine. In this joint working paper the authors analysed the benefits and costs that have already materialised or are yet expected to manifest themselves in the longer run in the public and private sectors.

The analysis suggests that the net benefits are highly asymmetric along the time dimension (high costs in the short and medium run – benefits accruing mostly in the longer run), as well as across regions and economic sectors (less competitive sectors and regions will face particularly onerous adjustment costs).

Based on the analysis, the authors proposed several policy recommendations, including careful sequencing of reforms along the approximation to the EU acquis prioritising competitiveness of export-oriented sectors and access to the EU market, attractiveness for FDI and integration into global value chains; focused ‘how-to’ training of businesses; higher financial support from the EU with strict conditionality along with both need-based and competitive performance-based elements, as well as programmes to alleviate social costs in the vulnerable sectors and regions.

The publication can be downloaded HERE.