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European Union Single Market: economic impact

  • Jacques Pelkmans
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    This compact literature survey covers the economic impact of the old EEC customs union and, more extensively, of the Single Market as it has emerged since the mid-1980s. The emphasis is on micro-economic studies of the effects on trade in goods (initially trade creation and diversion) and degrees of market integration measured in various ways, such as ‘home bias’. Aspects discussed also include trends of price convergence, effects on competition, and induced impact on static and dynamic efficiency (e.g. innovation) as well as variety and higher productivity at the firm level. Economic research on the internal market in services has barely begun in earnest. A very brief discussion of methods highlights some of the problems. Finally, the principal work on macro-economic effects is summarised; that is, on overall productivity, economic growth or one-off effects of specific internal market initiatives.

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    This chapter was published in: Steven N. Durlauf & Lawrence E. Blume (ed.) , , pages , 2011, 4th quarter update.
    This item is provided by Palgrave Macmillan in its series The New Palgrave Dictionary of Economics with number v:5:year:2011:doi:3868.
    Handle: RePEc:pal:dofeco:v:5:year:2011:doi:3868
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