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Determinants of functional specialisation in EU countries

Author

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  • Kordalska, Aleksandra
  • Olczyk, Magdalena

Abstract

Functional specialisation in global value chains is a complex phenomenon. This paper examines the determinants of functional specialisation patterns in EU countries, focusing on the business functions fabrication and research and development. The core result of the study is that lower wages favour functional specialisation in fabrication activities, while higher wages promote specialisation in research and development activities. The result is robust with respect to using different methodologies for measuring functional specialisation.

Suggested Citation

  • Kordalska, Aleksandra & Olczyk, Magdalena, 2023. "Determinants of functional specialisation in EU countries," Working Paper Forschungsförderung 287, Hans-Böckler-Stiftung, Düsseldorf.
    • Handle: RePEc:zbw:hbsfof:287
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    References listed on IDEAS

    as
    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Kailan Tian & Erik Dietzenbacher & Richard Jong-A-Pin, 2019. "Measuring industrial upgrading: applying factor analysis in a global value chain framework," Economic Systems Research, Taylor & Francis Journals, vol. 31(4), pages 642-664, October.
    3. Zhi Wang & Shang-Jin Wei & Kunfu Zhu, 2013. "Quantifying International Production Sharing at the Bilateral and Sector Levels," NBER Working Papers 19677, National Bureau of Economic Research, Inc.
    4. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
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    Cited by:

    1. Roman Stöllinger, 2023. "Von verlängerten Werkbänken und Headquarter-Ökonomien: Die Bedeutung funktionaler Spezialisierung in EU-Wertschöpfungsketten für die Lohnentwicklung," wiiw Policy Notes 70, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    global values chains trade; R&D; GVC; research and development;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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