Home Bias and Market Integration in the EU

Posted: 17 Mar 2009

See all articles by Narcissa Balta

Narcissa Balta

Bruegel

Juan Delgado

GAMES Economics; Universidad Carlos III de Madrid - Economics Dpt.

Date Written: March 2009

Abstract

The Single Market has been one of the core policies of the European Union. Twenty years after the launch of the Single Market Programme national borders still matter in Europe. Consumption baskets and investment portfolios of European countries still contain a predominant share of home products and equity. This article evaluates the success of integration policies in the European Union by assessing the magnitude and evolution of home bias across Europe in goods and services markets and in equity portfolio holdings. There are large differences in the degree of home bias across European countries. More worrisome is that home bias in goods and services has barely changed in recent years. This might indicate that traditional integration policies are no longer effective and need to be transformed to continue delivering. (JEL Codes: D78, F15, F21, F36)

Suggested Citation

Balta, Narcissa and Delgado, Juan, Home Bias and Market Integration in the EU (March 2009). CESifo Economic Studies, Vol. 55, Issue 1, pp. 110-144, 2009, Available at SSRN: https://ssrn.com/abstract=1359553 or http://dx.doi.org/ifn037

Narcissa Balta (Contact Author)

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium

Juan Delgado

GAMES Economics ( email )

Calle Manzana 7
Madrid, 28015
Spain

HOME PAGE: http://https://gamesecon.com/juan-delgado/

Universidad Carlos III de Madrid - Economics Dpt. ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

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