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Spillover effects of Germany`s final demand on Southern Europe

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  • Oliver Picek
  • Enno Schröder

Abstract

We calibrate a closed multi-country input-output model with data from the World Input-Output Database to estimate the size of spillover effects of Germany?s final demand on GDP, employment, and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.

Suggested Citation

  • Oliver Picek & Enno Schröder, 2017. "Spillover effects of Germany`s final demand on Southern Europe," IMK Working Paper 181-2017, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    • Handle: RePEc:imk:wpaper:181-2017
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    2. Oliver Picek, 2020. "Spillover Effects From Next Generation EU," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(5), pages 325-331, September.
    3. Priscila Espinosa & Daniel Aparicio-Pérez & José Manuel Pavía & Emili Tortosa-Ausina, 2023. "On the Impact of Next Generation EU Funds: A Regional Synthetic Control Method Approach," Working Papers 2023/07, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Beirne, John & Renzhi, Nuobu & Volz, Ulrich, 2021. "Persistent current account imbalances: Are they good or bad for regional and global growth?," Journal of International Money and Finance, Elsevier, vol. 115(C).
    5. Patrizio Lecca & Martin Christensen & Andrea Conte & Giovanni Mandras & Simone Salotti, 2020. "Upward pressure on wages and the interregional trade spillover effects under demand‐side shocks," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 165-182, February.
    6. Khan, Haider, 2021. "COVID-19 in South Africa: An Intersectional Perspective based on Socio-economic Modeling and Indigenous Knowledge Base," MPRA Paper 108321, University Library of Munich, Germany.
    7. Oliver Picek, 2018. "Kann nationale Konjunkturpolitik noch Beschäftigung schaffen?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 180, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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