International fragmentation of production, trade and growth: Impacts and prospects for EU member states
AbstractThere has been an ongoing trend towards increasing internationalisation of production over the past two decades or so. This implies that countries become more dependent on demand from foreign countries but also that countries and industries are able to source intermediates from different countries, an activity referred to as ‘offshoring’. Whereas the former aspect means an increasing dependency on foreign markets, the second aspect implies that countries and industries source at lower costs making them more productive and competitive. Using the World Input-Output Database (WIOD) we first provide an overview of these trends over the period 1995-2011 for 40 advanced and emerging countries with a specific focus on the EU as a whole and the individual EU member states. In the second part of the paper we show results from an econometric analysis to explain growth performance, focusing on the impacts of the increasing internationalisation of production.
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Bibliographic InfoPaper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 484.
Length: 55 pages
Date of creation: Apr 2013
Date of revision:
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Other versions of this item:
- Neil Foster-McGregor & Robert Stehrer & Marcel Timmer, 2013. "International Fragmentation of Production, Trade and Growth: Impacts and Prospects for EU Member States," wiiw Research Reports 387, The Vienna Institute for International Economic Studies, wiiw.
- E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- F15 - International Economics - - Trade - - - Economic Integration
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-09 (All new papers)
- NEP-EEC-2013-06-09 (European Economics)
- NEP-INT-2013-06-09 (International Trade)
- NEP-MAC-2013-06-09 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"The nature and growth of vertical specialization in world trade,"
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- Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
- Neil Foster-McGregor & Johannes Pöschl & Robert Stehrer, 2012. "Offshoring and the Elasticity of Labour Demand," wiiw Working Papers 90, The Vienna Institute for International Economic Studies, wiiw.
- Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133, October.
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