期刊名称：DIW Diskussionspapiere / Deutsches Institut für Wirtschaftsforschung, Berlin
出版年度：2007
卷号：2007
出版社：Deutsches Institut für Wirtschaftsforschung, Berlin
摘要：In this paper we investigate the effects of EU enlargement on price convergence.
The internal market is expected to boost integration and increase efficiency and
welfare through a convergence of prices in product markets. Two principal
drivers are crucial to explain price developments. On the one hand, higher
competition exerts a downward pressure on prices because of lower mark ups. On
the other hand, the catching up process of low income countries leads to a rise
in the price levels and higher inflation over a transition period. Using
comparative price levels for 41 product categories price convergence can be
established. However, the speed of convergence is rather slow, with half lives
around 10 years. The enlargement has slightly stimulated convergence towards the
mean price, and this impact is robust across different groups of countries.
Moreover, the driving forces of convergence are explored. In line with
theoretical predictions, the rise in competition exerts a downward pressure on
prices, while catching up of low income countries leads to a rise in price
levels and higher inflation. The findings have important implications, as price
convergence facilitates the working of common economic policies.
关键词：EU enlargement, price convergence, catching up and competition
