The Visegrad Economic Area

We have conducted a rather thorough empirical analysis to understand the similarities and dissimilarities of the Visegrad Group economies. A paper is under publication, and some highlights will be published in our blog. As the Eurostat regional map shows, the Visegrad countries are not a very homogeneous region, but at the country level they show more similarities than dissimilarities.
In our view it is rather convenient to view the V4 countries as a rather homogeneous regional service and product market, especially when language differences are not important. The analysis of 17 official EU structural and policy indicators the Visegrad countries seem to be one of the most homogeneous part of European Economic Area. Only the regions of Western Germany and France provide such an even playfield for economic activities within Europe.
From an investment location perspective, there are significant regional differences in the group and especially Slovakia has a unique set of tax and monetary policy as the only member in the eurozone. Investment patterns are similar with notable national and regional characteristics.
If you are considering to enter the Central European market or locate a new investment, the V4 countries and the Baltic States provide a very similar business environment. This is also true in Croatia, which is expected to join the EU only in 2012 or 2013.

(The manuscript is available upon request before publication)