Trade Openness and International Fragmentation of Production in the European Union: The New Divide?
This paper analyses the relationship between international fragmentation of production, trade openness and global export performance in the European Union from 2000 to 2009. As most trade models featuring international production sharing show, the higher the level of fragmentation and related international openness the better the export performance of a country. Our econometric analysis confirms this hypothesis. We estimate an error correction model based on panel data on the EU Member States and find that inter-European fragmentation and openness significantly improve their long-run export performance. Policy implications could be that restrictive policies preventing firms from internationalizing production would weaken a countryï¿½s position in global production networks, with long-term negative effects on domestic jobs and growth.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 20 (2012)
Issue (Month): 3 (08)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0965-7576|
References listed on IDEAS
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.:
- Beverly Lapham & Hiroyuki Kasahara, 2005.
"Import Protection as Export Destruction,"
2005 Meeting Papers
528, Society for Economic Dynamics.
- Hiroyuki Kasahara & Beverly Lapham, 2006. "Import Protection as Export Destruction," University of Western Ontario, Economic Policy Research Institute Working Papers 20062, University of Western Ontario, Economic Policy Research Institute.
- Hiroyuki Kasahara & Beverly Lapham, 2006. "Import Protection as Export Destruction," Working Papers 1064, Queen's University, Department of Economics.
- Dieter Ernst & Paolo Guerrieri, 1998. "International production networks and changing trade patterns in East Asia: The case of the electronics industry," Oxford Development Studies, Taylor & Francis Journals, vol. 26(2), pages 191-212.
- Dieter Ernst & Paolo Guerrieri, 1997. "International Production Networks And Changing Trade Patterns In East Asia The Case Of The Electronics Industry," DRUID Working Papers 97-7, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Ernst, Dieter & Guerrieri, Paolo, 1998. "International Production Networks and Changing Trade Patterns in East Asia: The Case of the Electronics Industry," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3f55c124, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
- Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 241-275, May.
- Bas, Maria & Strauss-Kahn, Vanessa, 2010. "Does importing more inputs raise exports? Firm level evidence from France," MPRA Paper 27315, University Library of Munich, Germany.
- Maria Bas & Vanessa Strauss-Kahn, 2011. "Does Importing more Inputs Raise Exports? Firm Level Evidence from France," Working Papers 2011-15, CEPII research center.
- Luca De Benedictis & Lucia Tajoli, 2008. "Similarity in trade structures, integration and catching-up," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 165-182, 04.
- Emanuele Breda & Rita Cappariello & Roberta Zizza, 2007. "Vertical Specialisation in Europe: Evidence from the Import Content of Exports," Rivista di Politica Economica, SIPI Spa, vol. 97(3), pages 189-189, May-June.
- Emanuele Breda & Rita Cappariello & Roberta Zizza, 2008. "Vertical specialisation in Europe: Evidence from the import content of exports," Temi di discussione (Economic working papers) 682, Bank of Italy, Economic Research and International Relations Area.
- Arndt, Sven W. & Kierzkowski, Henryk (ed.), 2001. "Fragmentation: New Production Patterns in the World Economy," OUP Catalogue, Oxford University Press, number 9780199243310, April.
- Judith M. Dean & K. C. Fung & Zhi Wang, 2011. "Measuring Vertical Specialization: The Case of China," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 609-625, 09.
- Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
- Pesaran, M.H. & Smith, R., 1992. "Estimating Long-Run Relationships From Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9215, Faculty of Economics, University of Cambridge.
- Kaminski, Bartlomiej & Ng, Francis, 2005. "Production disintegration and integration of Central Europe into global markets," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 377-390.
- Frederick L Joutz & Stephan Danninger, 2007. "What Explains Germanyâ€™s Rebounding Export Market Share?," IMF Working Papers 07/24, . Full references (including those not matched with items on IDEAS)