| Author (Person) | in ‘t Veld, Jan |
|---|---|
| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
| Publisher | Publications Office of the European Union |
| Series Title | European Economy: Discussion Papers |
| Series Details | Number 094 |
| Publication Date | 08/02/2019 |
| ISSN | 2443-8022 |
| Content Type | Research Paper |
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Summary: This paper examines the macro-economic benefits of the Single Market in goods and services by simulating a counterfactual scenario in which tariffs and non-tariff barriers are reintroduced. Model simulations show how the reintroduction of trade barriers in such a counterfactual would lead to significantly lower trade flows between the Member States. Lower trade openness also means reduced market size and less competition. Using empirical evidence on the effect of the Single Market on firms’ mark-ups over marginal costs, we add these effects to the direct trade effects to come to a total estimate of the economic benefits of the Single Market of between 8% and 9% higher GDP on average for the EU. |
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| Source Link |
Link to Main Source
https://ec.europa.eu/info/publications/quantifying-economic-effects-single-market-structural-macromodel_en
Alternative sources
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| Subject Categories | Business and Industry, Trade |
| Subject Tags | Single Market |
| International Organisations | European Union [EU] |
