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    European integration: the third step

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    Publication type
    Working paper
    Author
    Bowen, Harry
    Sleuwaegen, Leo
    Publication Year
    2004
    Publication Issue
    19
    Publication Number of pages
    43
    
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    Abstract
    A perception of declining EU competitiveness has intensified calls for structural reforms within the EU. This paper examines recent evidence on changes in relative EU competitiveness and considers the observed changes in relation to the evolving competitive environment facing EU firms during the past two decades. Our analysis suggests that recent declines in EU competitiveness reflect an adjustment (or lack thereof) within the EU in response to an evolutionary “Third Step” in the process of EU integration: global market integration. We find that, starting from the mid-1990s, the EU began to face unprecedented increases in external sources of competition. The rising competition from external sources has created pressures for EU firms to alter their organizational and product market strategies to meet the challenge of a globally integrating market. While many leading EU firms are found to have responded to this challenge, EU firms remain hampered by anachronistic EU product and labor market regulations. The growing calls for structural reform therefore reflect the increased external competitive pressure on EU firms as they attempt to respond to growing global competition and to thereby strengthen their global competitiveness. JEL Classification: D21, F02, F23, L10, O40 Keywords: Competitiveness, European Integration, Foreign Competition, Globalization.
    Keyword
    Strategic Context & International Business
    Knowledge Domain/Industry
    Strategy
    URI
    http://hdl.handle.net/20.500.12127/1519
    Other links
    http://public.vlerick.com/Publications/8ffe9fc3-69a9-e011-8a89-005056a635ed.pdf
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