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The Disciplinary Effect of the Single Market on Swedish Firms

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  • Joakim Gullstrand
  • Helena Johansson

Abstract

In the 1980s it became increasingly clear that the European Community market was still segmented by national borders because of non-tariff barriers to trade. A major objective of the Single Market Program in 1992 was to remove these barriers, thereby enforcing intra-union competition. In this paper, a panel of Swedish firm-level data is used to evaluate whether domestic market power has been curtailed as a consequence of the SMP and of the Swedish membership in the European Union in 1995. Evidence of increased competition emerges, as price-cost margins have declined in industries with high non-tariff barriers prior to 1992. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Joakim Gullstrand & Helena Johansson, 2005. "The Disciplinary Effect of the Single Market on Swedish Firms," Open Economies Review, Springer, vol. 16(4), pages 381-398, October.
    • Handle: RePEc:kap:openec:v:16:y:2005:i:4:p:381-398
    DOI: 10.1007/s11079-005-4743-3
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    References listed on IDEAS

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    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
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    7. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057, Elsevier.
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    Cited by:

    1. Bassanini, Andrea & Brunello, Giorgio, 2011. "Barriers to entry, deregulation and workplace training: A theoretical model with evidence from Europe," European Economic Review, Elsevier, vol. 55(8), pages 1152-1176.
    2. Rachel Griffith & Rupert Harrison & Helen Simpson, 2010. "Product Market Reform and Innovation in the EU," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(2), pages 389-415, June.
    3. Wilhelmsson Fredrik, 2006. "Market Power and European Competition in the Swedish Food Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-26, October.

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