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The Structure of Europe: International Input-Output Analysis with Trade in Intermediate Inputs and Capital Flows

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  • Sebastian Benz
  • Mario Larch
  • Markus Zimmer

    ()

Abstract

In this paper we theoretically derive an international Rybczynski matrix. Its elements indicate the aggregate output change in a country when endowment with one or more factors in the same or another country is increased. This allows us to characterize the production structure in 11 countries of the European Union. Starting from a baseline case with free trade in final goods only, we analyze two types of interaction between countries: international trade of intermediate inputs and internationally mobile capital.

Suggested Citation

  • Sebastian Benz & Mario Larch & Markus Zimmer, 2013. "The Structure of Europe: International Input-Output Analysis with Trade in Intermediate Inputs and Capital Flows," ifo Working Paper Series 161, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_161
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    Cited by:

    1. Christian Bjørnskov & Niklas Potrafke, 2013. "The size and scope of government in the US states: does party ideology matter?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 687-714, August.

    More about this item

    Keywords

    Rybczynski effects; input-output analysis; European Union; intermediate inputs.;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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