After its 2004 enlargement to 25 member nations, the European Union, with a population of 452 million and a GDP surpassing $10 trillion, represents one of the most powerful economic engines in the world, and is the primary trading and investment partner with the US. However, in spite of the mostly integrated single market in Europe, internal trade between member nations can be hindered by competing national level technical standards. To address such inefficiencies, the European Commission issues standardization directives under the New Approach doctrine, adopted in 1985 to harmonize product standards in Europe. This paper attempts to evaluate the effectiveness of the New Approach by analyzing European production and trade data, internal and external, of certain products governed by New Approach norms, in order to determine if economic activity in those products was significantly impacted by the streamlined standards, while controlling for other socioeconomic factors.

Volume Subject Area:
Engineering Business Management
Topics:
Engineering standards, Engines
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