Work

Price convergence in the European car market

Year: 2007

Type: article

Abstract: This article examines price convergence in the European Union (EU) car market over the period 1995 to 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.

Source: Applied Economics

DOI: 10.1080/00036840600749847

Authors: Salvador Gil-Pareja, Simón Sosvilla-Rivero

Institutions: Universitat de València, Universidad Complutense de Madrid, Fundación de Estudios de Economía Aplicada

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funder: Ministerio de Ciencia y Tecnología

OpenAlex ID: W2072944946

FWCI: 5.827

Cites: 45

Cited by: 33

Related to: 10