Trade in parts and components across Europe

0459405 - NHÚ 2019 RIV GB eng E - Electronic Document
Frensch, R. - Hanousek, Jan - Kočenda, E.
Trade in parts and components across Europe.
London: VoxEU.org: CEPR’s policy portal, 2016
Institutional support: RVO:67985998
Keywords : Europe * global value chains * margins of trade
OECD category: Applied Economics, Econometrics
http://voxeu.org/article/trade-parts-and-components-across-europe

With the rise of global value chains, trade in intermediates now accounts for more than two-thirds of total trade. This column provides evidence that trade in parts and components of capital goods between new and old EU countries is driven by wage differences across countries. It further shows that wage differences play an important role in the ex ante investment decision to establish a new production network.
Permanent Link: http://hdl.handle.net/11104/0259605