Working Paper: CEPR ID: DP317
Authors: Louka T. Katseli
Abstract: The paper analyzes the evolution of coalitions over the early 1980's between business interests, government authorities in the larger industrialized countries and European institutions, notably the Commission, to promote policies aimed at securing a European comparative advantage in oligopolistic industries. Strategic gains for such firms are derived through the exploitation of economies of scale associated with expansion of production and reduction in average unit costs. The creation of the Internal Market is a prerequisite for the success of strategic trade policies since enlargement and integration of the home market gives firms a better base for oligopolistic competition internationally.
Keywords: economic integration; internal market; strategic trade policy; initiative; eurocorporatism
JEL Codes: 423
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| evolution of coalitions among business interests, government authorities, and European institutions (F55) | strategic trade policies (F13) |
| internal market (L19) | strategic trade policies (F13) |
| market integration (F02) | firm performance (L25) |
| asymmetric distribution of gains from integration (F12) | macroeconomic policy decisions (E60) |
| internal market (L19) | enhanced oligopolistic competition internationally (F12) |