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The role of international production sharing in EU productivity and competitiveness

Author

Listed:
  • Altomonte, Carlo

    (Bocconi University of Milan)

  • Ottaviano, Gianmarco

    (London School of Economics)

Abstract

Is international production sharing associated with stronger competitiveness? We address this question from the complementary viewpoints of firms and industries. We show that international production sharing is indeed associated with stronger competitiveness not only at the firm level but also at the industry level. From the viewpoint of firms, stronger competitiveness gives access to a larger number of more complex options when it comes to the design of international operations. From the viewpoint of industries, stronger competitiveness arises from the possibility of reallocating resources from less to more productive firms. For both firms and industries stronger competitiveness arises from the possibility of exploiting a richer set of internationalization strategies to deal with the challenges and the opportunities of globalization.

Suggested Citation

  • Altomonte, Carlo & Ottaviano, Gianmarco, 2011. "The role of international production sharing in EU productivity and competitiveness," EIB Papers 3/2011, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2011_003
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    Cited by:

    1. Agnes Kügler & Andreas Reinstaller & Klaus S. Friesenbichler, 2023. "Can value chain integration explain the diverging economic performance within the EU?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 25-47, March.
    2. Cheng,Wenyin & Meng,Bo & Gao,Yuning, 2023. "‘Made in the World’: Measuring the Productivity of Global Value Chains," IDE Discussion Papers 890, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Dolores An~o´n Higo´n & Juan A. Man~ez & Mari´a E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis-Llopis, 2017. "The determinants of firms’ convergence to the European TFP frontier," Working Papers 1707, Department of Applied Economics II, Universidad de Valencia.
    4. Dolores An~o´n Higo´n & Juan A. Man~ez & Mari´a E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2018. "Follow the leader: Evidence of the Productivity catch-up of European firms," Working Papers 1806, Department of Applied Economics II, Universidad de Valencia.
    5. Svetlana Balashova & Apostolos Serletis, 2021. "Oil Price Uncertainty, Globalization, and Total Factor Productivity: Evidence from the European Union," Energies, MDPI, vol. 14(12), pages 1-11, June.
    6. Kevin J. Fox & Wulong Gu & Beiling Yan, 2017. "Productivity Growth and International Competitiveness," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 113-133, February.
    7. Anna Nowak & Armand Kasztelan, 2022. "Economic competitiveness vs. green competitiveness of agriculture in the European Union countries," Oeconomia Copernicana, Institute of Economic Research, vol. 13(2), pages 379-405, June.

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    More about this item

    Keywords

    Productivity; Competitiveness; Internationalization; Firm heterogeneity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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