Structural Change, Growth and Bazaar Effects in the Single EU Market

This paper analyzes the link between structural change, growth and bazaar effects in the context of open economies. At first we consider the theoretical basis of structural change and discuss the interdependencies between trade, foreign direct investment and innovation dynamics. The empirical analysis puts the focus on traits of innovation and structural change in selected countries. As regards the hypothesis of a bazaar effect we distinguish between gross effects and net effects. The statistics and the analysis of input-output-tables does not provide evidence that bazaar effects would be a critical problem for Germany or other EU countries.