EconPapers    
Economics at your fingertips  
 

Fragmentation, Incomes and Jobs. An analysis of European competitiveness

Marcel Timmer, Robert Stehrer, Bart Los and Gaaitzen de Vries

No GD-130, GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen

Abstract: Increasing fragmentation of production across borders is changing the nature of international competition. It increasingly plays out at the level of activities within industries, rather than at the level of whole industries. As a result, current measures of competitiveness such as export market shares become less informative for the policy debate and new measures are needed. In this paper we study the links between fragmentation and the creation of income and jobs based on a recent multi-sector input-output model of the world economy. Using this model, we measure the income and jobs in a country that are directly and indirectly related to the production of manufacturing goods, called GVC (global value chain) income and jobs. We find that during 1995-2008 growth in GVC income and jobs is much lower than growth in gross exports in all European countries, in particular Germany and Eastern European countries that rely heavily on imported intermediates. We also find that fragmentation does not necessarily lead to destruction of jobs in advanced countries. The number of GVC jobs located in the manufacturing sector declined, but this was more than compensated for by GVC job creation in supporting services in most EU countries. Actually, in 2008, almost half of the jobs related to global manufacturing production were outside the manufacturing sector. We also find a magnification of comparative advantage of EU countries as there is a shift away from activities in GVC production carried out by low-skilled workers towards those carried out by higher skilled workers. Taken together our results show that a GVC perspective on competitiveness provides new measures that can inform the policy debates on globalisation.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://irs.ub.rug.nl/ppn/356389278 (application/pdf)

Related works:
Working Paper: Fragmentation, incomes, and jobs: an analysis of European competitiveness (2014) Downloads
Journal Article: Fragmentation, incomes and jobs: an analysis of European competitiveness (2013) Downloads
Working Paper: Fragmentation, incomes and jobs: an analysis of European competitiveness (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gro:rugggd:gd-130

Access Statistics for this paper

More papers in GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling (). This e-mail address is bad, please contact .

 
Page updated 2019-08-24
Handle: RePEc:gro:rugggd:gd-130