ON THE RELEVANCE OF GLOBAL VALUE CHAINS AND THE INTRA-EUROPEAN DIVISION OF LABOUR

Manuel Fritsch and Jürgen Matthes

National Institute Economic Review, 2020, vol. 252, R4-R18

Abstract: This article first introduces the concept, the rationale, the causes and the genesis of global value chains from a worldwide perspective in the form of a brief overview. In the second empirical section, a closer look is taken at the intermediate trade integration in the EU. In particular, the employment effects of the intermediate trade connections for each EU member state and for selected sectors are highlighted. In the concluding section, it is explained why global value chains are particularly susceptible to rising protectionism. Moreover, tentative implications of the current coronavirus pandemic are pointed out.

Date: 2020
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