Author: | Head, K. Mayer, T. |
Title: | Non-Europe: The magnitude and causes of market fragmentation in the EU |
Journal: | Weltwirtschaftliches Archiv
2000 : HEFT 2, VOL. 136:2, p. 284-314 |
Index terms: | Markets Consumers Trade Tariffs European Union Models |
Language: | eng |
Abstract: | 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 investigate the links btw. 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 non-tariff barriers. However, there appears to be almost no relationship btw. market fragmentation and the barriers that were identified and removed by Europes Single Market Programme. |
SCIMA