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The Market for Cars in the Enlarged European Community

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  • Smith, Alasdair

Abstract

This paper analyzes the effects of European Community trade policy towards the car market, in a formal model in which the motor industry is treated as an imperfectly competitive industry with economies of scale in production. Voluntary restrictions on exports of Japanese cars to Community markets are modeled as having an anti-competitive effect. The model is numerically calibrated to 1988 data and a range of policy changes are simulated, including the entry of Spain and Portugal into the Community, and the reduction of border barriers and fiscal harmonization associated with the Community's 1992 program. The main focus is on the effects of changes in the Community's external trade policy.

Suggested Citation

  • Smith, Alasdair, 1989. "The Market for Cars in the Enlarged European Community," CEPR Discussion Papers 360, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:360
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    Cited by:

    1. Harry Flam, 1992. "Product Markets and 1992: Full Integration, Large Gains?," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 7-30, Fall.
    2. Daniel Gros, 1992. "A note on ec trade policy after 1992: The effects of replacing existing national import quotas by community quotas that are“Equally Restrictive”," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(1), pages 125-135, March.

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