The Structure of Europe: International Input–Output Analysis with Trade in Intermediate Inputs and Capital Flows

Sebastian Benz, Mario Larch and Markus Zimmer

Review of Development Economics, 2014, vol. 18, issue 3, 461-474

Abstract: In this paper we theoretically derive an international Rybczynski matrix. Its elements indicate the aggregate output change in a country when endowment with one or more factors in the same or another country is increased. This allows us to characterize the production structure in 11 countries of the European Union. Starting from a baseline case with free trade in final goods only, we analyze two types of interaction between countries: international trade of intermediate inputs and internationally mobile capital.

Date: 2014
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Working Paper: The Structure of Europe: International Input-Output Analysis with Trade in Intermediate Inputs and Capital Flows (2013)
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