Export Performance in Europe: What Do We Know from Supply Links?

Author/Editor:

Jesmin Rahman ; Tianli Zhao

Publication Date:

March 7, 2013

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

One of the most important recent developments in international trade is the increasing interconnectedness of export production through a vertical trading chain network that streches across many countries, with each country specializing in particular stages of a good’s production. Using value added trade statistics, this paper tries to dissect and reshape understanding of European exports: where exports values are created, the role of vertical supply links in export growth, what is contributing to the growth in supply links, and how comparative advantages of countries are affected by supply links over time. Our analysis finds strong role of supply links in cross-country export performance in Europe, where these links between countries grew based on physical proximity, cost differential and similarity in export structure.

Series:

Working Paper No. 2013/062

Subject:

Comparative advantage Economic sectors Export performance Exports International trade Manufacturing Service exports

English

Publication Date:

March 7, 2013

ISBN/ISSN:

9781475516555/1018-5941

Stock No:

WPIEA2013062

Pages:

52

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