The role of trade in intra-industry productivity growth - the case of old and new European Union countries (1995-2007)
AbstractThe purpose of this paper is to evaluate the role of trade in productivity growth in a sample of 30 sectors in 25 EU countries in the period of rapid East-West integration. Shift-share analysis is used to show that changes in value added per hour worked in these countries appear to be mainly due to positive developments (rising productivity) within single industries and only to a lower extent result from a shift towards higher productivity activities. Trade is found to be an important positive determinant of intra-industry productivity growth in European countries. Exports and imports alike can be associated with efficiency gains, but intermediate good exchange and trade with New Member States exert a particularly strong influence on intra-industry productivity growth in the EU.
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Bibliographic InfoPaper provided by Faculty of Management and Economics, Gdansk University of Technology in its series GUT FME Working Paper Series A with number 1.
Length: 47 pages
Date of creation: Feb 2013
Date of revision:
productivity; trade; shift share analysis; European Union;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-16 (All new papers)
- NEP-EFF-2013-03-16 (Efficiency & Productivity)
- NEP-EUR-2013-03-16 (Microeconomic European Issues)
- NEP-TRA-2013-03-16 (Transition Economics)
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