Imports-Competition-Single European Market

Anna Bottasso

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: This paper analyses the empirical literature which tests the hypothesis that imports (or potential imports) may increase domestic competition. Most of studies analysed, including those conducted on industrialised countries and more recent contributions on less developed countries, confirm the existence of a negative correlation between firms’ profit margins and the degree of imports penetration. This hypothesis has been analysed within the discussion of the impact of the Single European Market Program: the available empirical evidence suggest the existence of pro-competitive effects induced by the creation of the Single European Market. This result has been confirmed by empirical analysis conducted on Italian data.

JEL-codes: F13 F15 L16 (search for similar items in EconPapers)
Pages: 25 pages Keywords : Imports-Competition-Single European Market
Date: 1998-06
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