Trade Openness and International Fragmentation of Production in the European Union: The New Divide?

Guerrieri, Paolo; Caffarelli, Filippo Vergara

doi:10.2139/ssrn.2030828

Cited by 58 publications

(9 citation statements)

References 121 publications

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“…Furthermore, empirical evidence also emphasises that the proliferation of global production sharing -referred to as production fragmentation -is an important determinant of export performance (see e.g. Guerrieri and Caffarelli, 2012;Vogiatzoglou, 2012). Guerrieri and Caffarelli (2012) study the role of trade fragmentation and openness for the export performance of EU-27 Member States between 2000 and 2009 and find that a country which moves from the first to the last quartile of the fragmentation distribution (i.e.…”

Section: Productivity Domestic Vs International Linkages and Externmentioning

confidence: 99%

“…Guerrieri and Caffarelli, 2012;Vogiatzoglou, 2012). Guerrieri and Caffarelli (2012) study the role of trade fragmentation and openness for the export performance of EU-27 Member States between 2000 and 2009 and find that a country which moves from the first to the last quartile of the fragmentation distribution (i.e. from little or no to highly fragmented production) would experience an increase in its export share by 0.17 percentage points.…”

Section: Productivity Domestic Vs International Linkages and Externmentioning

confidence: 99%

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Competitiveness in the European Economy

Collignon¹,

Esposito²

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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Section: Productivity Domestic Vs International Linkages and Externmentioning

confidence: 99%

Section: Productivity Domestic Vs International Linkages and Externmentioning

confidence: 99%

Competitiveness in the European Economy

Collignon¹,

Esposito²

2014

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“…The steady accumulation of foreign assets allowed an FDI‐ and outsourcing‐related increase in productivity in the manufacturing companies of the core. Several eastern European countries began receiving generous flows of German FDI, especially directed at the establishment of offshore production plants, in line with the worldwide process of unbundling of the production chain and with the German desire to achieve better access to rapidly growing foreign markets (Danninger and Joutz, ; Guerrieri and Caffarelli, ). German firms exploited their historical and geographical proximity to the new EU members by undertaking an intense process of foreign investment and outsourcing, thereby contributing to wage moderation and boosting domestic productivity and profits in Germany.…”

Section: Germany's Socio‐economic Model and Global Competitivenessmentioning

confidence: 99%

TheGerman Model and theEuropean Crisis

Bonatti

Fracasso

2013

J of Common Market Studies

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The large current account imbalances in the eurozone reflect persistent diverging trends between core and periphery countries, also fed by low interest rates and abundant capital flows brought about by the introduction of the euro. With the global financial crisis, the market sentiment has changed, and capital has left the periphery countries suffering from debt and growth problems due to their failure to bring price-wage dynamics into uniformity with those of the more disciplined countries. Germany is called upon to provide financial assistance and additional external demand; however, though the euro is at stake, Germans are recalcitrant. This article investigates the rationale of the German stance in light of the (corporatist-etatist, neo-mercantilist) German socio-economic model and the widespread concern about losing the competitiveness that Germany regained through painful reforms and changes in the last two decades.

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“…Many countries could industrialize much faster by joining global value chains rather than building their own (Baldwin & Robert-Nicoud, 2014). Also, within the advanced countries, higher fragmentation of production improves long-run export performance (Guerrieri & Caffarelli, 2012). Danninger & Joutz (2007) find that fragmenting production chains was a key determinant of Germany's improved export performance.…”

Section: Introductionmentioning

confidence: 99%

Upstreamness of Employment and Global Financial Crisis in Poland: The Role of Position in Global Value Chains

Hagemejer

Tyrowicz

2017

Economics of European Crises and Emerging Markets

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The emergence of global value chains leads to fragmentation of the production processes and reallocation of those processes across countries. With increasing number of production stages, the manufacturing process is located increasingly further away from the consumer. Literature suggests that fragmentation of production increases the international transmission of shocks. The global financial crisis is believed to lead to consolidation and shortening of global value chains and amplification of demand shocks along the global value chains, the so-called bullwhip effect. In this paper we study the effects of global financial crisis on employment, focusing specifically on the role of the distance from final demand (upstreamness) in this adjustment. We find that upstreamness matters for both labor demand and adjustment in employment during the periods of crisis, but this relationship is heterogeneous across countries. While the reaction to the crisis is indeed amplified further away from final demand, contrary to our expectations it is mostly channeled through lower job creation rates rather than faster job destruction. Moreover, the adverse effects of the crisis are lower in foreign firms, this difference does not depend on the distance from final demand.

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Trade Openness and International Fragmentation of Production in the European Union: The New Divide?

Cited by 58 publications

References 121 publications

Competitiveness in the European Economy

Competitiveness in the European Economy

TheGerman Model and theEuropean Crisis

Upstreamness of Employment and Global Financial Crisis in Poland: The Role of Position in Global Value Chains

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