The European single market: bad news for developing countries?
Developing Countries have been particularly worried by the single-market-program since the EC absorbs more than a third of their total exports. At present, fears of a Fortress Europe and negative net trade effects for DCs appear to be unfounded, however. DCs have proven to be competitive in a number of labour and capital intensive industries in the past; and it is rather unplausible that European suppliers will gain a competitive edge in these industries as a result of the single market. With the exception of agricultural economies specialized on specific products, the net welfare effect of EC-1992 will, therefore, be either positive or at worst zero for most DCs.
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- Michael W. S. Davenport, 1990. "The External Policy of the Community and its Effects upon the Manufactured Exports of the Developing Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 29(2), pages 181-200, December.
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