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Non-Europe : The Magnitude and Causes of Market Fragmentation in the EU

Author

Listed:
  • Keith Head

    (Sauder - Sauder School of Business [British Columbia] - UBC - University of British Columbia [Canada])

  • Thierry Mayer

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU. — In 1985 the European Commission diagnosed its member states as suffering from excessive market fragmentation, later referred to as "Non-Europe." The authors examine the empirical basis for the Commission's diagnosis using a trade model derived from monopolistic competition. They then investigate the links between the initial size and subsequent evolution of border effects within the EU. The findings support the view that European consumers act as if imports from other members were subject to high nontariff barriers. However, there appears to be almost no relationship between market fragmentation and the barriers that were identified and removed by Europe's Single Market Programme.

Suggested Citation

  • Keith Head & Thierry Mayer, 2000. "Non-Europe : The Magnitude and Causes of Market Fragmentation in the EU," Post-Print hal-00267441, HAL.
    • Handle: RePEc:hal:journl:hal-00267441
    DOI: 10.1007/BF02707689
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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