Price Competition in the enlarged EU 27 Export Market and the Role of Foreign Direct Investment

Jens K. Perret ()
Additional contact information
Jens K. Perret: European Institute for International Economic Relations at the University of Wuppertal

No SDP14011, Schumpeter Discussion Papers from Universitätsbibliothek Wuppertal, University Library

Abstract: From a microeconomic perspective competition between firms has been duely discussed. Extending microeconomic concepts to a macroeconomic level and considering competition between countries becomes more complex. The complexity issues is tackled in this study by extending a methodology developed in Borbely (2006) to account for specialization in specific sectors as well as price groups that under certain assumptions can be seen as a quality indicator. This study observes 27 EU countries - excluding Croatia - and Turkey. This allows for a view on the competition structure in the context of the EU common market. In a second step of the analysis it is analyzed whether FDI inflows impact the price - quality - level of a sector or the probability to switch to a higher or a lower price level in said sector. Where in other publications including \cite{borbely06} for selected EU countries a positive impact of FDI inflows is found, this study finds for the EU as a whole or the EU 15 or EU 10+1 (including Turkey) sub-groups no significant impact of FDI inflows on the price level or the probability to switch to another price level.

Keywords: structural change; European Union; price competition; exports; revealed comparative advantages; export unit values (search for similar items in EconPapers)
JEL-codes: F14 F15 L16 (search for similar items in EconPapers)
Pages: 21
Date: 2014-08
New Economics Papers: this item is included in nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://elekpub.bib.uni-wuppertal.de/ubwhsmig/down ... riginalFilename=true (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bwu:schdps:sdp14011

Access Statistics for this paper

More papers in Schumpeter Discussion Papers from Universitätsbibliothek Wuppertal, University Library
Bibliographic data for series maintained by Frank Hoffmann ().