IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v26y2012i2p240-257.html
   My bibliography  Save this article

EU enlargement and the evolution of European production networks

Author

Listed:
  • Curran, Louise
  • Zignago, Soledad

Abstract

We analyse the regionalisation of the European Union's production networks and the impact of enlargement by looking at trends in trade in intermediate and final products in different types of technology between 1995 and 2007. We find that enlargement has coincided with quite major changes in the structure of trade within and beyond the EU. Overall we find that the new member states of the EU12 have become a more important source of goods both for the sub-region itself and for the EU15.

Suggested Citation

  • Curran, Louise & Zignago, Soledad, 2012. "EU enlargement and the evolution of European production networks," Research in International Business and Finance, Elsevier, vol. 26(2), pages 240-257.
    • Handle: RePEc:eee:riibaf:v:26:y:2012:i:2:p:240-257
    DOI: 10.1016/j.ribaf.2011.12.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531911000596
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2011.12.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Crozet, Matthieu & Koenig Soubeyran, Pamina, 2004. "EU enlargement and the internal geography of countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 265-279, June.
    2. Schnatz, Bernd & Bussière, Matthieu & Fidrmuc, Jarko, 2005. "Trade integration of Central and Eastern European countries: lessons from a gravity model," Working Paper Series 545, European Central Bank.
    3. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    4. Fernandes, Ana M., 2007. "Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries," Journal of International Economics, Elsevier, vol. 71(1), pages 52-71, March.
    5. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    6. Sébastien Dupuch & Hugues Jennequin & El Mouhoud Mouhoub, 2004. "EU enlargement: what does it change for the European economic geography?," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 241-274.
    7. Kristien Coucke & Leo Sleuwaegen, 2008. "Offshoring as a survival strategy: evidence from manufacturing firms in Belgium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(8), pages 1261-1277, December.
    8. Marin, Dalia, 2008. "The New Corporation in Europe," Munich Reprints in Economics 19242, University of Munich, Department of Economics.
    9. Kasahara, Hiroyuki & Rodrigue, Joel, 2008. "Does the use of imported intermediates increase productivity? Plant-level evidence," Journal of Development Economics, Elsevier, vol. 87(1), pages 106-118, August.
    10. Mirabelle Muûls & Mauro Pisu, 2009. "Imports and Exports at the Level of the Firm: Evidence from Belgium," The World Economy, Wiley Blackwell, vol. 32(5), pages 692-734, May.
    11. Hughes Jennequin, 2004. "EU enlargement: what does it change for the European economic geography?," Post-Print halshs-00207537, HAL.
    12. Laszlo Halpern & Miklos Koren & Adam Szeidl, 2005. "Import and Productivity," CERS-IE WORKING PAPERS 0509, Institute of Economics, Centre for Economic and Regional Studies.
    13. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    14. Medvedev, Denis, 2012. "Beyond Trade: The Impact of Preferential Trade Agreements on FDI Inflows," World Development, Elsevier, vol. 40(1), pages 49-61.
    15. repec:dau:papers:123456789/1859 is not listed on IDEAS
    16. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2005. "Trade Integration of Central and Eastern European Countries: Lessons from a Gravity Model," Working Papers 105, Oesterreichische Nationalbank (Austrian Central Bank).
    17. Peter Lamb & Jörgen Sandberg & Peter W Liesch, 2011. "Small firm internationalisation unveiled through phenomenography," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 672-693, June.
    18. D'artis Kancs, 2007. "Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 73-97.
    19. Olivier Bertrand, 2011. "What goes around, comes around: Effects of offshore outsourcing on the export performance of firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 334-344, February.
    20. Buch, Claudia M. & Piazolo, Daniel, 2001. "Capital and trade flows in Europe and the impact of enlargement," Economic Systems, Elsevier, vol. 25(3), pages 183-214, September.
    21. John Pickles & Adrian Smith & Milan Bucěk & Poli Roukova & Robert Begg, 2006. "Upgrading, Changing Competitive Pressures, and Diverse Practices in the East and Central European Apparel Industry," Environment and Planning A, , vol. 38(12), pages 2305-2324, December.
    22. Ingo Geishecker, 2006. "Does Outsourcing to Central and Eastern Europe Really Threaten Manual Workers’ Jobs in Germany?," The World Economy, Wiley Blackwell, vol. 29(5), pages 559-583, May.
    23. Joze Damijan & Crt Kostevc, 2011. "Trade liberalisation and economic geography in CEE countries: the role of FDI in the adjustment pattern of regional wages," Post-Communist Economies, Taylor & Francis Journals, vol. 23(2), pages 163-189.
    24. Peter Huber, 2008. "Did previous EU-enlargements change the regional distribution of production? An empirical analysis of three enlargement episodes," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 3(3/4), pages 187-206.
    25. Kaminski, Bartlomiej & Ng, Francis, 2001. "Trade and production fragmentation : Central European economies in European Union networks of production and marketing," Policy Research Working Paper Series 2611, The World Bank.
    26. Thomas Osegowitsch & André Sammartino, 2008. "Reassessing (home-)regionalisation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 184-196, March.
    27. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and trade: The case of Vietnam," Research in International Business and Finance, Elsevier, vol. 25(1), pages 39-52, January.
    28. Louise Curran & Soledad Zignago, 2009. "Evolution of EU and its Member States' Competitiveness in International Trade," Working Papers 2009-11, CEPII research center.
    29. Igor Filatotchev & Johannes Stephan & Björn Jindra, 2008. "Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1133-1148, October.
    30. Eric Rugraff, 2010. "Strengths and weaknesses of the outward FDI paths of the Central European countries," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 1-17.
    31. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    32. Sanjaya Lall, 2000. "The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-98," Oxford Development Studies, Taylor & Francis Journals, vol. 28(3), pages 337-369.
    33. John H Dunning & Masataka Fujita & Nevena Yakova, 2007. "Some macro-data on the regionalisation/globalisation debate: a comment on the Rugman/Verbeke analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 177-199, January.
    34. Hooy, Chee-Wooi & Goh, Kim-Leng, 2010. "Exposure to the world and trading-bloc risks: A multivariate capital asset pricing model," Research in International Business and Finance, Elsevier, vol. 24(2), pages 206-222, June.
    35. Masaaki Kotabe & K Scott Swan, 1994. "Offshore Sourcing: Reaction, Maturation, and Consolidation of U.S. Multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 115-140, March.
    36. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    37. Cerrato, Daniele, 2009. "Does innovation lead to global orientation? Empirical evidence from a sample of Italian firms," European Management Journal, Elsevier, vol. 27(5), pages 305-315, October.
    38. Julia Spies & Helena Marques, 2009. "Trade effects of the Europe agreements: A theory-based gravity approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 11-35.
    39. Raja Kali & Javier Reyes, 2007. "The architecture of globalization: a network approach to international economic integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 595-620, July.
    40. Gianfranco De Simone, 2008. "Trade in Parts and Components and the Industrial Geography of Central and Eastern European Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(3), pages 428-457, October.
    41. Alan M. Rugman & Simon Collinson, 2005. "Multinational Enterprises in the New Europe: Are They Really Global?," Working Papers 2005-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    42. John Pickles & Adrian Smith, 2011. "Delocalization and Persistence in the European Clothing Industry: The Reconfiguration of Trade and Production Networks," Regional Studies, Taylor & Francis Journals, vol. 45(2), pages 167-185.
    43. Mohamed Hedi Bchir & Lionel Fontagné & Paolo Zanghieri, 2003. "The Impact of EU Enlargement on Member States: a CGE Approach," Working Papers 2003-10, CEPII research center.
    44. Kalotay, Kalman, 2004. "The European flying geese: New FDI patterns for the old continent?," Research in International Business and Finance, Elsevier, vol. 18(1), pages 27-49, April.
    45. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Evert Meijers & Martijn Burger & Masahisa Fujita & Nobuaki Hamaguchi, 2016. "Supply chain internationalization in East Asia: Inclusiveness and risks," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 81-100, March.
    2. Engelbert Stockhammer & Cédric Durand & Ludwig List, 2015. "European growth models and working class restructuring before the crisis," Working Papers PKWP1508, Post Keynesian Economics Society (PKES).
    3. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2020. "Production networks in Europe: A natural experiment of the EU enlargement to the east," University of Göttingen Working Papers in Economics 390, University of Goettingen, Department of Economics.
    4. Stockhammer, Engelbert & Durand, Cédric & List, Ludwig, 2015. "Growth models and working class restructuring before the crisis," Economics Discussion Papers 2015-4, School of Economics, Kingston University London.
    5. Srðan Marinkoviæ & Zenaida Šabotiæ & Dragiæ Bankoviæ, 2018. "EU enlargement: Does economics of regional integration matter?," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(2), pages 881-904.
    6. Prema-chandra Athukorala & Swarnim Waglé, 2013. "Export Performance in Transition: The Case of Georgia," Departmental Working Papers 2013-02, The Australian National University, Arndt-Corden Department of Economics.
    7. Blyde, Juan S. & Volpe Martincus, Christian & Molina, Danielken, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 6668.
    8. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    9. Juan S. Blyde & Christian Volpe Martincus & Danielken Molina, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 86755 edited by Juan S. Blyde, February.
    10. Inmaculada Martínez‐Zarzoso & Anca M. Voicu & Martina Vidovic, 2020. "Production networks in Europe: A natural experiment of the European Union enlargement to the east," Review of International Economics, Wiley Blackwell, vol. 28(5), pages 1143-1163, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    2. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    3. Hansen, Thorsten, 2010. "Tariff Rates, Offshoring and Productivity: Evidence from German and Austrian Firm-Level Data," Discussion Papers in Economics 11465, University of Munich, Department of Economics.
    4. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    5. Louise Curran & Soledad Zignago, 2009. "Evolution of EU and its Member States' Competitiveness in International Trade," Working Papers 2009-11, CEPII research center.
    6. Patricia Augier & Olivier Cadot & Marion Dovis, 2013. "Imports and TFP at the firm level: the role of absorptive capacity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 956-981, August.
    7. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    8. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    9. Jenny Berrill & Shengkai Sun, 2018. "An Investigation into the Benefits of Investing in Chinese Multinational Companies," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2), pages 186-209, August.
    10. Giuliano Conti & Alessia Lo Turco & Daniela Maggioni, 2014. "Rethinking the import-productivity nexus for Italian manufacturing," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 589-617, November.
    11. Carlo Altomonte & Gabor Bekes, 2009. "Trade Complexity and Productivity," CERS-IE WORKING PAPERS 0914, Institute of Economics, Centre for Economic and Regional Studies.
    12. Berrill, Jenny & Mannella, Giancarlo, 2013. "Are firms from developed markets more international than firms from emerging markets?," Research in International Business and Finance, Elsevier, vol. 27(1), pages 147-161.
    13. Pol Antràs & Davin Chor, 2021. "Global Value Chains," NBER Working Papers 28549, National Bureau of Economic Research, Inc.
    14. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.
    15. Jože Damijan & Črt Kostevc & Matija Rojec, 2015. "Bright past, shady future? Past and potential future export performance of CEE countries in a comparative perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 306-335, September.
    16. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    17. Patrik Vanek, 2022. "Aspects of Measuring Firm-Level Multinationality," MENDELU Working Papers in Business and Economics 2022-83, Mendel University in Brno, Faculty of Business and Economics.
    18. Youngok Kim & Sidney J Gray, 2017. "Internationalization strategy and the home-regionalization hypothesis: The case of Australian multinational enterprises," Australian Journal of Management, Australian School of Business, vol. 42(4), pages 673-691, November.
    19. O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    20. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:26:y:2012:i:2:p:240-257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.