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German Exports: Impact on the Selected EU Countries

Author

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  • Juráček Marek

    (Mendel University in Brno, Faculty of Business and Economics, Department of Finance, Czech Republic.)

Abstract

This research focuses on the impact of German exports on exports of the other selected EU countries. We used the Global VAR approach to build a robust trade model between 23 EU countries, the USA, and China. By stressing this model with different shocks, we were able to observe how exports of the EU countries react to German loss of competitiveness and decline of demand from Germany. Based on our simulation, we could identify countries which i. are Germany’s competitors and would benefit from German loss of competitiveness, ii. are tied with German trade so tightly that loss of German competitiveness would negatively affect their exports.

Suggested Citation

  • Juráček Marek, 2021. "German Exports: Impact on the Selected EU Countries," Review of Economic Perspectives, Sciendo, vol. 21(1), pages 41-55, March.
    • Handle: RePEc:vrs:reoecp:v:21:y:2021:i:1:p:41-55:n:5
    DOI: 10.2478/revecp-2021-0003
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    More about this item

    Keywords

    International trade; Global VAR; German exports; European Union;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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