The Disciplinary Effect of the Single Market on Swedish Firms

Joakim Gullstrand () and Helena Johansson

Open Economies Review, 2005, vol. 16, issue 4, 398 pages

Abstract: In the 1980s it became increasingly clear that the European Community market was still segmented by national borders because of non-tariff barriers to trade. A major objective of the Single Market Program in 1992 was to remove these barriers, thereby enforcing intra-union competition. In this paper, a panel of Swedish firm-level data is used to evaluate whether domestic market power has been curtailed as a consequence of the SMP and of the Swedish membership in the European Union in 1995. Evidence of increased competition emerges, as price-cost margins have declined in industries with high non-tariff barriers prior to 1992. Copyright Springer Science + Business Media, Inc. 2005

Keywords: European Union; Sweden; integration; market power; panel data (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s11079-005-4743-3

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