The Effects of the EU's Eastern Enlargement in the Accession Countries. Evidence at Country and Firm Level

The Eastern enlargement of the EU changed the regulatory environment. As empirical results show, the quality of pro-market regulations – which are regarded as a reform pillar in former command economies – has improved. The result was a reduction in market concentration. Productivity increased at the enterprise level and factor allocation was also improved. This was ultimately reflected in growth driven more by innovation than by investment.