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Competitive pressure and its social consequences in EU member states and in associated countries

Competitive pressure and its social consequences in EU member states and in associated countries. László Halpern Institute of Economics Hungarian Academy of Sciences. Outline. Why competition? What is the project about? Project structure Partners Cooperation

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Competitive pressure and its social consequences in EU member states and in associated countries

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  1. Competitive pressure and its social consequences in EU member states and in associated countries László Halpern Institute of Economics Hungarian Academy of Sciences

  2. Outline • Why competition? • What is the project about? • Project structure • Partners • Cooperation • Policy relevance and expected results

  3. Why competition? • Competition in general • Competition in economyIs it bad for producer?Is it good for consumer?Is there a link? • How much competition? • Number of competitorsmonopoly vs perfect competition

  4. Welfare and competition 1 welfare degree of competition

  5. Welfare and competition 2 • Too low competitionno uncertaintylow quality products and servicesno innovation • Too high competitionhigh uncertaintyhigh marketing costsresources spent on retaliation instead of innovation

  6. What is the project about? 1 • Competitive pressure is a pre-requisite for the efficiency of resource allocation • It directly affects the well being of individuals • It challenges the existing social models in Europe • Main objective is to identify and analyse various economic and social dimensions of competitive pressure arising from the widening and deepening of European economic integration and to draw policy conclusions

  7. What is the project about? 2 • Understanding the effect of competitive pressure on the performance of corporate sector in catching-up EU member states and in some associated countries • Search for clues about the interrelation and interaction between policies and institutions • Look for new insights about the social consequences of competitive pressure, its effect on income distribution and social inequality as well as on the public perception of competitive pressure

  8. Project structure 1 • Competitive pressure in the corporate sector, its institutional aspects and policy framework • The competition effect of cross-border capital movement and domestic spillovers of FDI • Competition-driven labour market developments, their institutional and policy implications

  9. Project structure 2 • The effect of competitive pressure on income distribution and social policy; public perception, attitudes and norms • Integrated framework to analyze the impact of competitive pressure and enlargement on the interaction between corporate sector, labour market and households

  10. Partners • Coordinator: Institute of Economics, Hungarian Academy of Sciences • Partners:Centre for Economic and Strategic Research, BulgariaFédération pour la recherche économique et financière, FranceInstitute for Economic Research, Slovenia • Leverhulme Centre for Research on Globalisation and Economic Policy, University of Nottingham, UKRomanian Centre for Economic Modelling

  11. Cooperation • Different partners are responsible for different workpackages • 6 workshops during 3 years • 10 papers, empirical surveys • Disseminationexternal participants at workshopswebsiteexecutive summaries

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