The effects of economic integration on the competitiveness: The analysis of the changes in the competitiveness power of the European Union member countries ? the countries accapted as members by the 5th enlargement process

One of the purpose of participation of the countries in the regional integration movements is to be protected against global competition and to increase competitiveness. However, the domestic producers protected by tariffs encounter the market competition with the abolition of trade restriction after integration. Thus, a competitive environment takes place with in the integration. This case can lead to positive or negative effects on competitiveness of member countries.Accordingly, the competitiveness effects of integration that are subject to this investigation has been analysed on the European Union member countries and the countries accepted as members by the 5th enlargement process. The constructional changes after the membership process on the competitiveness power of the countries have been examined by the means of econometric models. Dummy variability test, Chow break point test and the CUSUM test were used as econometric models. According to results obtained, there has been on increase on the `89? SITC one-digit product or `28? SITC product. On the Other hand, a decrease has been observed on `19? SITC product after the membership. Finally, there has been no change on `29? SITC product after the membership in terms of competitiveness power. According to there results, the membership to the EU integration has not brought a desired increase in the competitiveness power of the countries. However, on the basis of products if is important that `6? countries should increase their competitiveness power in SITC-7 (Machinery ? Motor Vehicles) product within The Products Difficult to be Imitated and `5? countries should increase their competitiveness in SITC-5 product within the Product Easy to be Imitated.Key Words: European Union, Economic Integrasyon, Competitiveness.