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An analysis of the possible causes of product market malfunctioning in the EU: First results for manufacturing and service sectors

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Author Info

  • Fabienne Ilzkovitz
  • Adriaan Dierx
  • Nuno Sousa

Abstract

Within the context of the follow-up to the Single Market Review, the European Commission has screened EU manufacturing and service sectors for problems of market malfunctioning. This paper investigates the nature of these problems in the selected sectors and focuses on the following four dimensions of market functioning: regulation, integration, competition and innovation. In spite of the data limitations, regulation appears to be a cross cutting factor affecting market functioning in many sectors. The service sectors, in particular, show signs of an unexploited potential in terms of market integration and competition pressures. In all selected sectors there are indications of an unsatisfactory innovation performance. Overall, the analysis appears to confirm the results of the initial sector screening.

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Bibliographic Info

Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 336.

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Length: pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:euf:ecopap:0336

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Related research

Keywords: European economy; economic integration; regulation; competition; innovation; Internal Market; Single Market; structural policy; manufacturing sectors; service sectors; Ilzkovitz; Dierx; Sousa;

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Cited by:
  1. Kox, Henk L.M. & Leeuwen, George van, 2011. "Measuring dynamic market selection by persistent scale inefficiencies - new methodology applied to EU business services," MPRA Paper 34986, University Library of Munich, Germany.
  2. Henk Kox & George van Leeuwen (Statistics Netherlands), 2012. "Dynamic market selection in EU business services," CPB Discussion Paper 210, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Carlo Altomonte & Marcella Nicolini & Armando Rungi & Laura Ogliari, 2010. "Assessing the Competitive Behaviour of Firms in the Single Market: A Micro-based Approach," European Economy - Economic Papers 409, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  4. Kox, Henk L.M. & van Leeuwen, George, 2013. "Market selection and scale inefficiency – A new methodology applied to EU business services," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 77-94.
  5. Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "The European Union, southern multinationals and the question of the 'strategic industries'," MPRA Paper 33040, University Library of Munich, Germany.
  6. Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "Is the European Union ready for foreign direct investment from emerging markets?," MPRA Paper 33036, University Library of Munich, Germany.
  7. Judith Clifton & Daniel Díaz-Fuentes & Marcos Fernández-Gutiérrez & Julio Revuelta, 2011. "The new regulation of public infrastructure services in the European Union. Challenges for territorial cohesion," ERSA conference papers ersa11p1416, European Regional Science Association.
  8. Patrick Messerlin, 2010. "The European Community commercial policy," Sciences Po publications info:hdl:2441/5l6uh8ogmqi, Sciences Po.
  9. Clifton, Judith & Díaz-Fuentes, Daniel & Fernández Gutiérrez, Marcos & Revuelta, Julio, 2011. "Bringing Citizens Back In: Renewing Public Service Regulation," MPRA Paper 33051, University Library of Munich, Germany.

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