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An Analysis on Information Technologies (ICT) in EU Transition Economies: Application of Marshall’s Third Law

The new participant States as a result of the expansion of the EU on May 1, 2004 accounted for the largest member participation namely: Czech Republic, Cyprus, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia. Then, on January 1, 2007, Bulgaria and Romania were admitted to the Union. Lastly, on July 1, 2013, Croatia participated in the European Union as a full member. This study debates the idea that the information sector in the aforementioned European Union participants can play a powerful part in the integration. The debate associates Marshall’s third law that is derivative demand elasticity with the labor’s share in the total cost and reveals impact of these last participant States in the EU on the information sector, with regards to qualified workforce. In the current period as protection tendencies get stronger in the Global Economy , the EU transition economies obtain the opportunity of using the cost advantage based on increasing returns with the large-scale countries. On the other hand, this growth tendency transforms the labor costs for both the EU countries and the EU transition economies to exit from the 2008 global crisis.