6533b858fe1ef96bd12b650e
RESEARCH PRODUCT
PRICE CONVERGENCE IN THE EUROPEAN CAR MARKET
Simón Sosvilla RiveroSalvador Gil-parejasubject
Market integrationEconomics and EconometricsEconomicsMonetary economicsExchange rate0502 economics and businessRegional integrationEconomicsddc:330media_common.cataloged_instanceSocial Sciences & Humanities050207 economicsEuropean unionFree trademedia_common050208 financeEuro05 social sciencesMarket integration; Automobiles; European Union; Exchange ratesWirtschaftEconomic SectorsConvergence (economics)International economicsPolitical EconomyWirtschaftssektorenVolkswirtschaftslehre8. Economic growthEconomic and monetary unionPrice dispersiondescription
International audience; This paper examines price convergence in the European Union car market over the period 1995-2005. We find that there is a clear evidence of price convergence among the EU15 countries, but not before 1999. Moreover, countries of the Economic and Monetary Union (EMU) started convergence previously to the EU15 as a whole. Finally, exchange rate changes have significantly contributed to price dispersion over time across countries. The results provide significant evidence that trade liberalization and the EMU have enhanced the process of regional integration in the European automobile industry, even though there is room for further measures to promote integration.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2008-01-16 |