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The competition effects of the Single Market in Europe

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  • Chris Allen
  • Michael Gasiorek
  • Alasdair Smith

Abstract

"The reduction in trade barriers in Europe through the Single Market Programme (SMP) was intended to increase competition in European markets, and hence welfare and efficiency. The paper examines how the SMP has affected trade patterns and what can be learnt from this regarding the impact on competitive behaviour. Combining an econometric and computable general equilibrium methodology, it is argued that (1) the SMP has indeed had a strong impact on competitive behaviour; (2) the extent of the impact depends both on changes in the intensity of competition as well as on changes in the nature of competitive interaction; (3) while all economies experience potentially large welfare gains from the SMP, it is the smaller economies that experience the larger gains, but this in turn suggests that they experience a greater degree of restructuring." Copyright Centre for Economic Policy Research, Centre for Economic Studies, Maison des Sciences de l'Homme 1997.

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Bibliographic Info

Article provided by CEPR & CES & MSH in its journal Economic Policy.

Volume (Year): 13 (1998)
Issue (Month): 27 (October)
Pages: 439-486

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Handle: RePEc:bla:ecpoli:v:13:y:1998:i:27:p:439-486

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Cited by:
  1. Óscar Bajo Rubio & Antonio Gómez Gómez-Plana, 2000. "The Role of Country Size and Returns to Scale in Empirical Assessments of Economic Integration: The Case of Spain," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0005, Departamento de Economía - Universidad Pública de Navarra.
  2. Oscar Bajo-Rubio & Carmen Díaz-Roldán & Antonio G. Gómez-Plana, . "Price-Cost Margins and Economic Integration: How Important is the Pro-Competitive Effect?," Working Papers on International Economics and Finance 04-02, FEDEA.
  3. Anders Hoffmann, 2000. "The gains from partial completion of the single market," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 601-630, December.
  4. Abdulghaffar, Mahmood & Al-Ubaydli, Omar & Mahmood, Omar, 2014. "The Malfunctioning of the Gulf Cooperation Council Single Market: Features, Causes and Remedies," MPRA Paper 55413, University Library of Munich, Germany.
  5. Forslid, Rikard & Haaland, Jan I. & Ulltveit-Moe, Karen-Helene, 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," CEPR Discussion Papers 2247, C.E.P.R. Discussion Papers.
  6. Becker, Sascha S. & Nautz, Dieter, 2012. "Inflation, price dispersion and market integration through the lens of a monetary search model," European Economic Review, Elsevier, vol. 56(3), pages 624-634.
  7. Robert C. Feenstra, 2006. "New Evidence on the Gains from Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 617-641, December.
  8. Philipp J. H. Schröder, 2007. "Cartel Stability and Economic Integration," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 313-320, 05.
  9. Jacques Pelkmans, 2008. "Economic Approaches of the Internal Market," Bruges European Economic Research Papers 13, European Economic Studies Department, College of Europe.
  10. Antonio G. Gómez-Plana & Oscar Bajo-Rubio, . "Algunos efectos del mercado único europeo sobre la economía española: Un análisis a través de un modelo de equilibrio general aplicado," Studies on the Spanish Economy 213, FEDEA.
  11. Pain, Nigel & Young, Garry, 2004. "The macroeconomic impact of UK withdrawal from the EU," Economic Modelling, Elsevier, vol. 21(3), pages 387-408, May.

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