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Non-Europe: The magnitude and causes of market fragmentation in the EU

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Abstract

Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU. — In 1985 the European Commission diagnosed its member states as suffering from excessive market fragmentation, later referred to as “Non-Europe.” The authors examine the empirical basis for the Commission’s diagnosis using a trade model derived from monopolistic competition. They then investigate the links between the initial size and subsequent evolution of border effects within the EU. The findings support the view that European consumers act as if imports from other members were subject to high nontariff barriers. However, there appears to be almost no relationship between market fragmentation and the barriers that were identified and removed by Europe’s Single Market Programme.

Zusammenfassung

“Non-Europe”: Grö\e und Ursachen von Marktzersplitterung in der EU. — Im Jahre 1985 stellte die EuropÄische Kommission fest, dass ihre Mitgliedstaaten unter erheblicher Marktzersplitterung litten, spÄter auch “Non-Europe” genannt. Die Verfasser überprüfen die empirische Grundlage für die Diagnose der Kommission und benutzen dazu ein Handelsmodell, das aus monopolistischer Konkurrenz abgeleitet ist. Sie untersuchen für die EU-LÄnder, wieviel auslÄndische Güter die Verbraucher im VerhÄltnis zu inlÄndischen Gütern bei gleicher Entfernung von den Produktionsstandorten nachgefragt haben und wie sich dieses VerhÄltnis im Laufe der Zeit verÄndert hat. Ihre Ergebnisse stützen die Ansicht, dass die europÄischen Verbraucher sich so verhalten, als seien die Importe aus anderen Mitgliedstaaten hohen nichttarifÄren Handelshemmnissen unterworfen. Allerdings scheint so gut wie keine Beziehung zwischen der Marktzersplitterung und den Hemmnissen zu bestehen, die durch Europas Programm des Einheitlichen Binnenmarktes identifiziert und beseitigt wurden.

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Head, K., Mayer, T. Non-Europe: The magnitude and causes of market fragmentation in the EU. Rev World Econ 136, 284–314 (2000). https://doi.org/10.1007/BF02707689

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