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The importance of value chains for euro area trade: a time series perspective

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  • Duncan van Limbergen
  • Robert Vermeulen

Abstract

This paper analyses intra- and extra-euro area (EA) trade flows for the five largest EA countries in order to gauge the importance of value chains. We bridge findings from input-output table analysis with a time series approach. Evidence of value chains is found for all trade patterns and is most pronounced within the EA. Imports from EA and RoW are not only domestically absorbed, but also re-exported. Exports to EA depend on demand in both the importing country and the rest of the world (RoW), indicating the importance of re-exports to RoW. Demand factors play a large role in all trade patterns.

Suggested Citation

  • Duncan van Limbergen & Robert Vermeulen, 2020. "The importance of value chains for euro area trade: a time series perspective," Working Papers 672, DNB.
    • Handle: RePEc:dnb:dnbwpp:672
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    References listed on IDEAS

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    Cited by:

    1. Giovanni Cerulli & Silvia Nenci & Luca Salvatici & Antonio Zinilli, 2022. "Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(2), pages 373-407, July.

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    More about this item

    Keywords

    global value chains; euro area; trade patterns;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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