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Export Performance in Europe; What Do We Know from Supply Links?

Author

Listed:
  • Jesmin Rahman
  • Tianli Zhao

Abstract

One of the most important recent developments in international trade is the increasing interconnectedness of export production through a vertical trading chain network that streches across many countries, with each country specializing in particular stages of a good’s production. Using value added trade statistics, this paper tries to dissect and reshape understanding of European exports: where exports values are created, the role of vertical supply links in export growth, what is contributing to the growth in supply links, and how comparative advantages of countries are affected by supply links over time. Our analysis finds strong role of supply links in cross-country export performance in Europe, where these links between countries grew based on physical proximity, cost differential and similarity in export structure.

Suggested Citation

  • Jesmin Rahman & Tianli Zhao, 2013. "Export Performance in Europe; What Do We Know from Supply Links?," IMF Working Papers 13/62, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/62
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jean Balié & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 4/17, Sapienza University of Rome, DISS.
    2. Vrh, Nataša, 2015. "Pay-off to Participation in Global Value Chains: How Much are New EU Member States Lagging behind the Rest of EU Countries in Terms of Domestic Value Added in Exports?," MPRA Paper 67805, University Library of Munich, Germany.
    3. Alessandro Borin & Michele Mancini, 2015. "Follow the value added: bilateral gross export accounting," Temi di discussione (Economic working papers) 1026, Bank of Italy, Economic Research and International Relations Area.
    4. repec:ksa:szemle:1765 is not listed on IDEAS
    5. repec:pal:compes:v:59:y:2017:i:4:d:10.1057_s41294-017-0036-2 is not listed on IDEAS
    6. Doris Hanzl-Weiss & Roman Stöllinger & Robert Stehrer, 2014. "Die Sachgüterproduktion Österreichs," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 133, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    7. Rita Cappariello & Alberto Felettigh, 2015. "How does foreign demand activate domestic value added? A comparison among the largest euro-area economies," Temi di discussione (Economic working papers) 1001, Bank of Italy, Economic Research and International Relations Area.
    8. Andrea Éltet? & Ágnes Szunomár, 2016. "Chinese investment and trade ? strengthening ties with Central and Eastern Europe," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(1), pages 24-48, February.
    9. repec:taf:pocoec:v:29:y:2017:i:3:p:405-430 is not listed on IDEAS
    10. International Monetary Fund, 2015. "Central and Eastern Europe; New Member States (NMS) Policy Forum, 2014, Selected Issues Paper," IMF Staff Country Reports 15/98, International Monetary Fund.
    11. Gregorio Impavido & Heinz Rudolph & Luigi Ruggerone, 2013. "Bank Funding in Central, Eastern and South Eastern Europe Post Lehman; A “New Normal”?," IMF Working Papers 13/148, International Monetary Fund.
    12. 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.
    13. Jesmin Rahman & Ara Stepanyan & Jessie Yang & Li Zeng, 2015. "Exports in a Tariff-Free Environment; What Structural Reforms Matter? Evidence from the European Union Single Market," IMF Working Papers 15/187, International Monetary Fund.
    14. Borin, Alessandro & Mancini, Michele, 2017. "Follow the Value Added: Tracking Bilateral Relations in Global Value Chains," MPRA Paper 82692, University Library of Munich, Germany.
    15. Buelens, Christian & Tirpák, Marcel, 2017. "Reading the Footprints: how foreign investors shape countries' participation in global value chains," Working Paper Series 2060, European Central Bank.

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