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Comparative advantage of the EU in global value chains: How important and efficient are new EU members in transition?

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  • Henryk Gurgul

    (AGH University of Science and Technology, Department of Applications of Mathematics in Economics)

  • Lukasz Lach

    (AGH University of Science and Technology, Department of Applications of Mathematics in Economics)

Abstract

We suggest original modifications and extensions of the recently presented methodological developments in ex-post accounting framework in global value chains in order to obtain empirical results both for the analyzed group of ten CEE economies as well as at acountry-and-sector-specific level. The empirical results confirm that the role of the selected CEE economies in transition in creating value added with respect to the total value added in the European Union in the GVC framework was biggest in the cases of agriculture-, wood-products-, metal-production, and travel-and-tourism-related sectors. We also found that, after two decades of transition, the measures of productivity in the examined economies in 2009 were still much lower as comparedto the EU average for most of the sectors. Moreover, in the transition period, these indexes were increasing, especially after EU accession. In contrary, after two decades of transition, the measures of capital efficiency in the ten CEE economies in 2009 were comparable to the EU average for most of the sectors. Moreover, during this period, the growth rates of these indexes were, in general, positive. However, their growth rates dropped after EU accession.

Suggested Citation

  • Henryk Gurgul & Lukasz Lach, 2016. "Comparative advantage of the EU in global value chains: How important and efficient are new EU members in transition?," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 17(1), pages 21-58.
  • Handle: RePEc:agh:journl:v:17:y:2016:i:1:p:21-58
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    Cited by:

    1. Gurgul, Henryk & Lach, Łukasz, 2018. "On using dynamic IO models with layers of techniques to measure value added in global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 155-170.
    2. Gurgul, Henryk & Lach, Łukasz, 2019. "Eco-efficiency analysis in generalized IO models: Methods and examples," MPRA Paper 96604, University Library of Munich, Germany.
    3. Zheng, Haitao & Fang, Qi & Wang, Cheng & Jiang, Yunyun & Ren, Ruoen, 2018. "Updating China's input-output tables series using MTT method and its comparison," Economic Modelling, Elsevier, vol. 74(C), pages 186-193.

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    More about this item

    Keywords

    value added; productivity; capital efficiency; CEE economies; international input-output matrices; transition;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F1 - International Economics - - Trade

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