The Completion of the Single European Community Market in 1992: A Tentative Assessment of its Impact on Asian Developing Countries

Abstract

By the end of 1992 or soon thereafter, the European Economic Community (EC) will be further integrated into a single market, which will represent one of the largest economic entities in the worLd. Inevitably, the integration of the EC will substantially influence the world economy. With the 1992 deadline drawing closer. Asian Developing Countries (ADCs), along with other non-EC countries, are becoming increasingly concerned about the impact on their economies of the completion of the Single European market. The EC is a major trading partner as well as a major source of capital for ADCs. Therefore, the possible emergence of a "fortress Europe" could severely hurt the exports of ADCs and their economic performance. This research suggests, however, that while significant divergences could be seen across individual countries, there is no strong evidence to conclude that the completion of the Single Market will have a sizeable negative impact on economic growth of ADCs as xi group; rather, a positive impact over the medium-term is more likely to result.