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www.econstor.euThe views and opinions expressed here reflect the authors' point of view and not necessarily those of CASE Network.This report has been prepared under the Workpackage 1 of the Specific Targeted Research Project (STREP) within the framework of the ENEPO project (EU Eastern Neighbourhood: Economic Potential and Future Development), financed under the Sixth Framework Programme of the European Commission, Contract No 028736 (CIT5). The content of this publication is the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union or any other institutions the authors may be affiliated to.Acknowledgements. The current paper would not have been possible without generous support and assistance received from ENEPO project leaders Marek Dąbrowski and Maryla Maliszewska who provided useful advice and encouraged our team at all stages of our work. We are also very grateful to Janusz Szyrmer for his attentive reading, informal reviewing of the final version and for his comments on the manuscript that provided an invaluable critical feedback. We also benefited from the comments of participants of annual ENEPO meeting in Kyiv (March, 2007) and in Warsaw (April, 2008 The CASE Network is a group of economic and social research centers in Poland, Kyrgyzstan, Ukraine, Georgia, Moldova, and Belarus. Organizations in the network regularly conduct joint research and advisory projects. The research covers a wide spectrum of economic and social issues, including economic effects of the European integration process, economic relations between the EU and CIS, monetary policy and euro-accession, innovation and competitiveness, and labour markets and social policy. The network aims to increase the range and quality of economic research and information available to policy-makers and civil society, and takes an active role in on-going debates on how to meet the economic challenges facing the EU, post-transition countries and the global ...
