European Integration and the Functioning of Product Markets

Dierx, Adriaan; Ilzkovitz, Fabienne; Sekkat, Khalid

doi:10.4337/9781845423407

Cited by 12 publications

(5 citation statements)

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“…Moreover, Brülhart (1998) found out that, during the 1980s, localisation increased in 14 of the 18 European industries considered, especially labour-intensive industries and increasing returns to scale industries. In contrast, analysing the period 1970-1997Midelfart-Knarvik et al, 2004 suggested that the upward trend of the 1980s was a brief interlude before returning to decreasing localisation across European countries. Focusing on the spatial concentration of manufacturing value added between 1985 and 1998, Aiginger and Pfaffermayr (2004) suggested that an upward trend occurred in the pre-Single Market period while dispersion dominated afterwards, and the changes are significant for each period.…”

Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 92%

“…As for specialisation, earlier studies employed export data to assess country specialisation patterns (see, among others, e.g., Aquino, 1978;Sapir, 1996), while other studies analysed country specialisation using production data, such as employment, value-added, or output (see Combes and Overman, 2004 for a comprehensive survey). While Amiti (1999) reports a general increase in relative specialisation in EU countries from 1968to 1990, Midelfart-Knarvik et al (2004 tend to suggest that the process of relative specialisation is more complex at least from the early-1980s until the end of the 1990s. Recent studies, focussed on EU-27 countries, suggest increasing specialisation of the new member states (see e.g., Bagoulla andPéridy, 2011 andVechiu andMakhlouf, 2014).…”

Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 99%

“…A number of scholars find a pattern of increasing geographical concentration of manufacturing across European countries during the 1980s (Amiti, 1999;Brülhart, 1998;Midelfart-Knarvik et al, 2004), followed by a process of dispersion (deconcentration) during the following decade (Aiginger and Pfaffermayr, 2004;Midelfart-Knarvik et al, 2004). Using production data for Belgium, France, Italy, Germany and the United Kingdom, Amiti (1999) reported a significant increase in relative concentration for a majority of manufacturing industries between 1976 to 1989.…”

Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 99%

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EU integration and the geographies of economic activity: 1985–2019

2022

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One of the central predictions of the new economic geography (NEG) is that the removal of trade barriers and other such frictions should lead to the geographical concentration and specialisation of economic activity, both between and within nations. This prediction has been used to argue that as the European Union becomes more integrated, economic activity would become more regionally concentrated and specialised. Using relative entropy measures applied to a new regional data set for the period of 1985–2019, this paper finds that between 1985 and 2000 localisation and specialisation between European countries increased to some extent but with a widespread fall in specialisation and concentration within countries. After 2000, and particularly after 2007 and the Global financial Crisis, the spatial distribution of economic activities in Europe appears to have become more complex, with some degree of concentration, agglomeration and specialisation both across and within countries. Overall, however, we find little long-run support for the NEG prediction.

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Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 92%

Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 99%

Section: Previous Empirical Research: a Brief Surveymentioning

confidence: 99%

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EU integration and the geographies of economic activity: 1985–2019

2022

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“…This dataset is the result of a collaborative series of projects sponsored directly by the European Commission. See Davies et al (1996Davies et al ( , 2001, Dierx et al (2004) for the main results. 9.…”

Section: Notesmentioning

confidence: 96%

Product Differentiation, Industry Concentration and Market Share Turbulence

Matraves¹,

Rondi²

2007

International Journal of the Economics of Business

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Building on the current theory of industrial concentration, we analyze the relation between market size and product differentiation, and show how product differentiation impacts market share turbulence. We first propose that in markets where vertical product differentiation dominates, firms will have an incentive to escalate investment in advertising and/or R&D as market size increases. Secondly, such (firm-specific) investments will make competitive advantage more sustainable as the firm is less imitable. This will not be the case if the market is primarily characterized by homogeneous products or horizontal product differentiation. Our predictions are tested using an original EU dataset for 1987 and 1997. Our results strongly support our predictions - the degree of market share turbulence increases with market size. However, this relation is weakened by competitive investment in advertising and R&D.Product Differentiation, Market Size, Turbulence,

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“…8 As concisely summarised by Krugman and Venables (1996), increased integration is "a reduction in the cost of doing business across space" (p. 961). 9 For a recent assessment of the impact of European integration on market concentration, industry location, price dispersion, and productivity, see European Commission (2002) and Dierx, et al (2004). The report concludes that the integration process has raised the level of competition on European product markets, resulting in efficiency gains.…”

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confidence: 93%

Are EU Leading Firms Returning to Core Business? Evidence on Refocusing and Relatedness in a Period of Market Integration

Rondi

Vannoni

2005

Rev Ind Organ

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This paper tests, for 108 diversified EU manufacturing leaders faced by the EU integration shock (1987–1997), if firms responded to increased competitive pressure by readjusting their industry-mix around a core of related activities. Our results show that, in spite of limited reduction in diversification, firms pursued strategies of related constrained diversification by expanding the output of industries related to the core. We also find that complementarity amongst the firm’s operations – i.e., sharing common intermediary products or common output markets – drives the refocusing. The effect is stronger for highly diversified firms. Our findings suggest that EU leaders are moving toward a more efficient use of their resources. Copyright Springer 2005European integration, firm diversification, return to core,

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European Integration and the Functioning of Product Markets

Cited by 12 publications

References 0 publications

EU integration and the geographies of economic activity: 1985–2019

EU integration and the geographies of economic activity: 1985–2019

Product Differentiation, Industry Concentration and Market Share Turbulence

Are EU Leading Firms Returning to Core Business? Evidence on Refocusing and Relatedness in a Period of Market Integration

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