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Gauging The Vertical Specialization In Eu Trade

Author

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  • Iulia Monica Oehler-Sincai

    (Institute for World Economy (IWE), Romanian Academy, Romania)

Abstract

The purpose of this paper is threefold. First, we review the mechanisms and determinants of vertical specialization (VS), as this has gradually become the dominant characteristic of international trade. Second, we underline that there is a rich literature regarding VS in EU trade, at aggregate and individual levels and research is advancing together with the instruments used to measure trade in value added. Third, our investigation brings to the forefront a classification of EU countries according to their GVC participation index, taking into consideration both upstream and downstream links. As a conclusion, the VS analyses help us better understand the interconnectedness among countries and industries by means of foreign direct investment, trade, labour migration and technology transfer.

Suggested Citation

  • Iulia Monica Oehler-Sincai, 2014. "Gauging The Vertical Specialization In Eu Trade," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(2), pages 130-139, November.
    • Handle: RePEc:ntu:ntugeo:vol2-iss2-14-130
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    References listed on IDEAS

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    More about this item

    Keywords

    international trade; vertical specialization (VS); foreign direct investment (FDI); global value chains (GVC); global production networks; trade in value-added (TiVA); participation index; upstream links; downstream links.;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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