Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU

Keith Head and Thierry Mayer

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: In 1985 the European Commission diagnosed its member states as suffering from excessive market fragmentation, a state of affairs it later referred to as "Non-Europe". In response, the European Union launched an ambitious program to unify its internal market by removing non-tariff barriers. We examine the empirical basis for the Commission's diagnosis using a trade model derived from monopolistic competition. We then investigate the links between the initial size and subsequent evolution of border effects within the European Union. Our 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 relation between market fragmentation and the barriers that were identified and removed by Europe's Single Market Programme

Keywords: Borders; European Union; gravity; non-tariff barriers (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Pages: 38 pages
Date: 1999-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Review of World Economics, Springer, 2000, 136, pp. 284–314

Downloads: (external link)
https://shs.hal.science/halshs-03589644 (application/pdf)
https://doi.org/10.1007/BF02707689

Related works:
Journal Article: Non-Europe: The magnitude and causes of market fragmentation in the EU (2000)
Working Paper: Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU (2000)
Working Paper: Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU (2000)
Working Paper: Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU (1999)
Working Paper: Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:bla99004

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