How does foreign demand activate domestic value added? A comparison among the largest euro-area economies
Rita Cappariello () and
Alberto Felettigh ()
No 1001, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area
We propose an analysis for the largest euro-area countries (France, Germany, Italy and Spain), based on the framework developed by Koopman et al. (2014) for tracing value added in a country’s exports by source and use. We integrate their approach by introducing an additional dimension: the domestic-sector origin of value added embodied in exports. While providing an accurate picture of these countries’ participation in global value chains, we estimate the impact on their GDP of a shock to foreign demand and disentangle individual contributions along a geographical dimension in a period running from the introduction of the euro to the beginning of the sovereign debt crisis.
Keywords: global value chains; final internal demand; domestic value added activation; trade in value added (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed
Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 001/en_tema_1001.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1001_15
Access Statistics for this paper
More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().