PRICE CONVERGENCE IN THE EUROPEAN CAR MARKET

Salvador Antonio Gil-Pareja (1) , S Sosvilla-Rivero (2)

1 Estructura Económica
2 Department of Economics

This paper examines price convergence in the European Union car market over the period 1995-2005. 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.

Mots clés: Social Sciences & Humanities

Salvador Antonio Gil-Pareja, S Sosvilla-Rivero. PRICE CONVERGENCE IN THE EUROPEAN CAR MARKET. Applied Economics, 2008, 40 (02), pp.241-250. ⟨10.1080/00036840600749847⟩. ⟨hal-00582037⟩