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Production fragmentation and employment. Country-industry level analysis based on WIOD 2016

Author

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  • Sabina Szymczak

    (Gdańsk University of Technology, Faculty of Management and Economics)

Abstract

The aim of this research is to reanalyse the possible impact of production fragmentation on employment using the newest world input-output database (WIOD) release (2016) and recently proposed by Timmer, Los, Stehrer and de Vries measure of production fragmentation which traces the imports needed in all stages of production. This study is provided on country-industry level for 56 industries and 41 countries for the years 2000–2014. The estimated model is based on augmented labour demand function. Our empirical results show that certain countries and sectors can in fact feel the negative impact of increasing production fragmentation on labour demand.

Suggested Citation

  • Sabina Szymczak, 2018. "Production fragmentation and employment. Country-industry level analysis based on WIOD 2016," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 53, pages 131-146.
    • Handle: RePEc:sgh:annals:i:53:y:2018:p:131-146
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    References listed on IDEAS

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    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    3. Davide Castellani & Maria Mancusi & Grazia Santangelo & Antonello Zanfei, 2015. "Special section: Offshoring, immigration and the labour market: a micro-level perspective," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 157-162, June.
    4. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness [Who captures value in global supply chains?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(76), pages 613-661.
    5. Hartmut Egger & Udo Kreickemeier, 2017. "International Fragmentation: Boon or Bane for Domestic Employment?," World Scientific Book Chapters, in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 9, pages 237-263, World Scientific Publishing Co. Pte. Ltd..
    6. Tobias Brändle & Andreas Koch, 2017. "Offshoring and Outsourcing Potentials: Evidence from German Micro-Level Data," The World Economy, Wiley Blackwell, vol. 40(9), pages 1775-1806, September.
    7. Hagemejer Jan & Ghodsi Mahdi, 2017. "Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States," Central European Economic Journal, Sciendo, vol. 1(48), pages 19-36, November.
    8. Van Long, Ngo & Riezman, Raymond & Soubeyran, Antoine, 2005. "Fragmentation and services," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 137-152, March.
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    10. Bramucci, Alessandro & Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario, 2017. "Offshoring, industry heterogeneity and employment," IPE Working Papers 88/2017, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    11. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August.
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    13. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
    14. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
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    2. Kim, Keungoui & Bounfour, Ahmed & Nonnis, Alberto & Özaygen, Altay, 2021. "Measuring ICT externalities and their contribution to productivity: A bilateral trade based approach," Telecommunications Policy, Elsevier, vol. 45(2).

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    More about this item

    Keywords

    global value chains; production fragmentation; global import intensity; employment;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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