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Driving under the Influence Strategic Trade Policy and Market Integration in the European Car Industry

Andera, Jan LU (2007) In Lund Studies in Economic History 42.
Abstract (Swedish)
Popular Abstract in Swedish

Statlig intervention i ekonomin har, med varierande form och intensitet, varit ett allestädes närvarande fenomen i historien som haft genomgripande betydelse för handel, välfärd, internationella relationer och politiskt och ekonomiskt tänkande. Denna avhandling ger en omfattande analys av politiska ingrepp i den europeiska bilindustrin. Den skildrar politikens utveckling, processer, karaktär och innehåll samt presenterar historien mot en bakgrund av förändrade ekonomiska realiteter och tilltagande europeisk marknadsintegration. Avhandlingen behandlar i huvudsak de tre decennierna mellan åren 1970 och 2000 och fångar på så vis upp en mångfald av politiska handlingslinjer; från den aktiva... (More)
Popular Abstract in Swedish

Statlig intervention i ekonomin har, med varierande form och intensitet, varit ett allestädes närvarande fenomen i historien som haft genomgripande betydelse för handel, välfärd, internationella relationer och politiskt och ekonomiskt tänkande. Denna avhandling ger en omfattande analys av politiska ingrepp i den europeiska bilindustrin. Den skildrar politikens utveckling, processer, karaktär och innehåll samt presenterar historien mot en bakgrund av förändrade ekonomiska realiteter och tilltagande europeisk marknadsintegration. Avhandlingen behandlar i huvudsak de tre decennierna mellan åren 1970 och 2000 och fångar på så vis upp en mångfald av politiska handlingslinjer; från den aktiva industripolitik som bedrevs av vissa europeiska länder till de åtgärder som genomfördes av EU-kommissionen för att, åtminstone i princip, anpassa bilindustrin till den inre marknaden. Avhandlingen presenterar också en uppskattning av effekten av industripolitiken genom att mäta avvikelsen från Lagen om ett pris, d v s prisspridning. Med hjälp av en nyskapad uppsättning paneldata jämförs bilpriser på fyra största europeiska marknaderna (Tyskland, Frankrike, Italien och Storbritannien) med en referensmarknad (Nederländerna). Analysen visar att prisspridningen var mest utpräglad under den period som kännetecknades av industripolitisk aktivism medan skapandet av den inre marknaden följdes av priskonvergens. Skattningarna visar också att protektionistiska åtgärder ledde till relativa prisökningar på de berörda marknaderna och allmän prisdivergens, medan avskaffande av handelshinder följdes av relativa prissänkningar och allmän priskonvergens. (Less)
Abstract
State policy intervention in the economy has been a ubiquitous phenomenon in history. Varying in form and intensity, it has had a profound impact on trade, welfare, international relations, and political and economic thinking. This thesis provides an inclusive analysis of policy action in the European car industry. It details its development, processes, nature, and content and presents the story against a backdrop of changing economic realities and progressing European market integration. It mainly covers the three decades between the years 1970 and 2000 which saw implementation of the most diverse policy measures; from those associated with the height of industrial activism of several European governments to those policy actions... (More)
State policy intervention in the economy has been a ubiquitous phenomenon in history. Varying in form and intensity, it has had a profound impact on trade, welfare, international relations, and political and economic thinking. This thesis provides an inclusive analysis of policy action in the European car industry. It details its development, processes, nature, and content and presents the story against a backdrop of changing economic realities and progressing European market integration. It mainly covers the three decades between the years 1970 and 2000 which saw implementation of the most diverse policy measures; from those associated with the height of industrial activism of several European governments to those policy actions instituted by the Commission to make the European car sector compatible, at least in principle, with the Single Market. This thesis also presents an estimation of the effect of these policies by measuring the extent of deviation from the Law of One Price, i.e. price dispersion. Based on an original panel dataset for car prices in the four largest European markets (Germany, France Italy and the UK) relative to the reference market (The Netherlands), the evidence shows that price dispersion was most pronounced during the period of industrial activism while the progressing unification of the Community market was accompanied by discernible price convergence. Estimations also show that implementation of protective policy measures led to relative price increases in the relevant markets and general price divergence, while abolition of these policies was followed by relative price decreases and general price convergence. (Less)
Please use this url to cite or link to this publication:
author
opponent
  • Professor Neal, Larry, University of Illinois
organization
publishing date
type
Thesis
publication status
published
subject
keywords
Social and economic history, European market, Automobile industry, Law of One Price, Trade policy, Market Integration, Ekonomisk och social historia
in
Lund Studies in Economic History
volume
42
pages
343 pages
publisher
Almqvist & Wiksell International
defense location
Crafoordsalen, Holger Crafoords Ekonomiecentrum, Lund
defense date
2007-06-05 10:15
ISSN
1400-4860
ISBN
978-91-22-02170-4
language
English
LU publication?
yes
id
600e8c7a-b297-478d-a740-93b5b760e943 (old id 27097)
date added to LUP
2007-06-05 11:18:15
date last changed
2016-09-19 08:44:54
@phdthesis{600e8c7a-b297-478d-a740-93b5b760e943,
  abstract     = {State policy intervention in the economy has been a ubiquitous phenomenon in history. Varying in form and intensity, it has had a profound impact on trade, welfare, international relations, and political and economic thinking. This thesis provides an inclusive analysis of policy action in the European car industry. It details its development, processes, nature, and content and presents the story against a backdrop of changing economic realities and progressing European market integration. It mainly covers the three decades between the years 1970 and 2000 which saw implementation of the most diverse policy measures; from those associated with the height of industrial activism of several European governments to those policy actions instituted by the Commission to make the European car sector compatible, at least in principle, with the Single Market. This thesis also presents an estimation of the effect of these policies by measuring the extent of deviation from the Law of One Price, i.e. price dispersion. Based on an original panel dataset for car prices in the four largest European markets (Germany, France Italy and the UK) relative to the reference market (The Netherlands), the evidence shows that price dispersion was most pronounced during the period of industrial activism while the progressing unification of the Community market was accompanied by discernible price convergence. Estimations also show that implementation of protective policy measures led to relative price increases in the relevant markets and general price divergence, while abolition of these policies was followed by relative price decreases and general price convergence.},
  author       = {Andera, Jan},
  isbn         = {978-91-22-02170-4},
  issn         = {1400-4860},
  keyword      = {Social and economic history,European market,Automobile industry,Law of One Price,Trade policy,Market Integration,Ekonomisk och social historia},
  language     = {eng},
  pages        = {343},
  publisher    = {Almqvist & Wiksell International},
  school       = {Lund University},
  series       = {Lund Studies in Economic History},
  title        = {Driving under the Influence Strategic Trade Policy and Market Integration in the European Car Industry},
  volume       = {42},
  year         = {2007},
}