Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 277: The Process of Economic Integration in Europe: Consequences for EFTA Countries and Firms

Jan Fagerberg
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Jan Fagerberg: Research Institute of Industrial Economics (IFN)

Abstract: This paper discusses the impact of the completion of the EC internal market on the competitive position of EFTA firms (and, hence, also on economic growth in EFTA countries). The discussion falls in three parts. First, the process of European economic integration in the last decades – as reflected in the composition of EC imports - is examined. Then follows a discussion of the likely effects of the internal market, and to what extent these should be expected to deviate much from what can be observed from European economic integration in the past. Finally, the special problems and opportunities of EFTA firms - as firms from small countries with small domestic markets - are considered. The conclusion is that EFTA firms are in a good position to exploit the possibilities offered by the current deregulation efforts and opening up of markets implied by the EC internal market plans.

Keywords: Economic integration; EFTA; Firms

JEL-codes: F10; F15

34 pages, November 1990

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