Export Market Integration in the European Union
FEDEA Working Paper No. 2002-07
22 Pages Posted: 6 May 2002
Date Written: March 2002
This paper examines the degree of export-price dispersion among European Union countries and its evolution in the recent past (1988-1999). The paper also analyses the likely impact of the European Monetary Union on export-price convergence by looking at the past experience of European countries that participated in the exchange rate stability zone. The results indicate that export-price dispersion across European Union countries was usually lower than across OECD countries. Moreover, although there is little evidence of convergence, it is stronger across European Union countries. Finally, the results cast doubts on the hypothesis that the monetary union by itself will increase price convergence.
Keywords: Export market integration, European Union, Single currency
JEL Classification: F15, F30, O52
Suggested Citation: Suggested Citation