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Price convergence in the European car market

Listed author(s):
  • Salvador Gil-Pareja
  • Simon Sosvilla-Rivero

This article examines price convergence in the European Union (EU) car market over the period 1995 to 2005. We find that there is a clear evidence of price convergence among the EU15 countries, but not before 1999. Moreover, countries of the Economic and Monetary Union (EMU) started convergence previously to the EU15 as a whole. Finally, exchange rate changes have significantly contributed to price dispersion over time across countries. The results provide significant evidence that trade liberalization and the EMU have enhanced the process of regional integration in the European automobile industry, even though there is room for further measures to promote integration.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749847
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2007)
Issue (Month): 2 ()
Pages: 241-250

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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:241-250
DOI: 10.1080/00036840600749847
Contact details of provider: Web page: http://www.tandfonline.com/RAEC20

Order Information: Web: http://www.tandfonline.com/pricing/journal/RAEC20

References listed on IDEAS
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