The CEECs in global value chains: The role of Germany

Abstract

This paper aims to present the role of Germany in the global value chains (GVCs) of 10 Central and Eastern European countries (CEECs) in 1995–2011. GVCs, being a result of the fragmentation of production processes, have changed the nature of economic globalisation. The study covers five Central European countries (CECs) (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the three Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania. Germany is chosen because it is the main trading partner of the majority of the CEECs. The illustration of the position of Germany in GVCs of the CEECs is based on trade statistics in value added terms. The research results show that Germany has become an engine of increasing integration of the CECs in the GVCs. The role of Germany as a supplier of inputs to the CECs’ exports (backward linkages) is larger than its role as an exporter of value added originating from the CECs (forward linkages).

A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU*

“…Cooperation between the two European regions started to show signs of revival starting in the 1980's, while the fall of communist regimes peremptorily enabled the integration of the two production networks starting from the 1990's (Pavlínek 2002). During the 2000's, together with the admission of several CEE countries to the EU, this integration process has been intensified, with the CEE countries becoming increasingly dependent on this industry (Bilbao-Ubillos - Camino-Beldarrain 2008;Túry 2014;Pavlínek 2015;Ambroziak 2018). Beside the construction of new production sites, a considerable upgrading has also taken place, the CEE plants moving towards performing higher value-added activities, including research and development (Jürgens -Krzywdzinski 2009).…”

German Exports: Impact on the Selected EU Countries

“…The CEC are not only important sub-suppliers of parts and components for German enterprises, but they also import German added value in the form of intermediates. There has also been a rise in the German re-exports of CEC's final goods (Ambroziak, 2018). Germany became a locomotive that pulls the CEC's exports which brings consequences to study.…”

Lead firm’s reconfiguration decision and performance of the value chain

“…This high participation is due mainly to the heavy presence of subsidiaries of foreign MNCs, who relocated certain low-, mid-and some high-skilled labour-intensive activities to Hungary. Especially German multinationals integrate Hungary in GVCs, mainly through supplying Hungary with inputs for assembling (Ambroziak, 2018).…”