Table of Contents

International Handbook on the Economics of Integration, Volume II

International Handbook on the Economics of Integration, Volume II

Competition, Spatial Location of Economic Activity and Financial Issues

Elgar original reference

Edited by Miroslav N. Jovanović

With this Handbook, Miroslav Jovanović has provided readers with both an excellent stand-alone original reference book as well as an integral part of a comprehensive three-volume set. This introduction into a rich and expanding academic and practical world of international economic integration also provides a theoretical and analytical framework to the reader, presenting select analytical studies and encouraging further research.

Chapter 3: European Economic Integration and Network Industries

Pierre-André Buigues and Roderick Meiklejohn

Subjects: economics and finance, international economics, regional economics, urban and regional studies, regional economics

Extract

Pierre-André Buigues and Roderick Meiklejohn1 1 INTRODUCTION Network industries (telecommunications, postal services, air, rail, electricity, gas) are particularly important since they play a major role as determinants of the growth and competitiveness of the economy. In these industries, market opening (liberalisation) was expected to enhance the static and dynamic efficiency of firms. This chapter summarises the progress of the opening to competition of the network industries following the completion of the internal market programme. It was expected that the removal of the barriers between the member states of the European Union will induce a supply-side shock under the pressure of new competitors and that costs and prices will come down. This chapter is structured as follows. Section 2 discusses the economic characteristics of network industries. Section 3 presents the evolution of the regulatory and competition frameworks designed to allow these industries to operate efficiently. Section 4 covers the market structure and cross-border activities in the network industries, trade or mergers and acquisitions. Finally, section 5 presents an evaluation of the performance of network industries and the impact of liberalisation on performance. 2 MARKET INTEGRATION IN NETWORK INDUSTRIES The Economic Characteristics of Network Industries Network industries are characterised by the delivery of essential services to consumers via a network infrastructure. The network infrastructure is a structure of lines and nodes that determines the distribution of the services. The network structure is generally very costly (expensive capital investment) and the duplication of network infrastructures is often not economic. The network industries share...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information