The economic benefits of the EU Single Market in goods and services

in ’t Veld, Jan
Authors registered in the RePEc Author Service: Jan in 't Veld

Journal of Policy Modeling, 2019, vol. 41, issue 5, 803-818

Abstract: This paper examines the macro-economic benefits of the Single Market in goods and services by simulating a counterfactual scenario in which tariffs and non-tariff barriers are reintroduced. In this counterfactual scenario, intra-EU trade flows are significantly reduced. Lower trade openness also means reduced market size and less competition. Using empirical evidence on the effect of the Single Market on firms’ mark-ups over marginal costs, we add these competition effects and arrive at a total estimate of around 9% higher GDP on average for the EU, but with a strong degree of heterogeneity across EU countries.

Keywords: Trade integration; European Union; Single Market; General equilibrium (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F17 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:41:y:2019:i:5:p:803-818

DOI: 10.1016/j.jpolmod.2019.06.004

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