The researchers say that the Netherlands profited more than average from the trade with Eastern Europe. Business services, the retail and wholesale trade and the agriculture sector profited most of all from the job growth. In total, more than 11 billion euro was added to the Netherlands’ GDP, which represents 1.9% of GDP.

In Europe as a whole almost three million jobs were created through the closer cooperation with the East during the period studied. Employment in Western Europe grew by 1.5% thanks to the creation of 2.3 million jobs. In Eastern Europe, employment grew by 600,000 jobs, or 1%.

ING felt the study was necessary because, it said, there are questions in society about the steadily closer ties between Western, Central and Eastern Europe.

ING researcher Rob Ruhl observes that the findings from the study provide no basis for those reservations. ‘The findings from the study confirm the idea that the removal of trade barriers and greater efficiency have made a positive contribution to economic development in both Eastern and Western Europe.’

A new study for ING Commercial Banking by ING’s Economics Department provides conclusive evidence that the relationship between Western Europe and Central and Eastern Europe and Russia since 1995 has led to important economic benefits across the continent.

The report, entitled ‘Valuing a close connection’, estimates that an additional US$ 512 billion was added to the regions’ combined GDP growth between 1995 and 2011, as a result of growing trade, despite the impact of the financial crisis. It also indicates that some 3.2 million jobs were created across the regions between 1995 and 2008.

It is the first time that the impact the two regions have on each other has been measured by looking at the added value created and its effect on employment.

The study was based on data collected by the University of Groningen, a member of the Excellence Group of leading European universities, which collated national data from 40 countries worldwide.

(Financieele Dagblad, page 4 by Media Monitor, Wednesday, 21 May 2014)

http://www.ingcb.com/insights/articles/the-value-of-a-close-connection