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

Jesmin Rahman and Tianli Zhao

No 2013/062, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; VA export; Vertical Integration; Supply Link; Value Added; Comparative Advantage; export supply network; export orientation; export performance; Exports; Export performance; Manufacturing; Service exports; Europe (search for similar items in EconPapers)
Pages: 52
Date: 2013-03-07
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Citations: View citations in EconPapers (24)

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