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Spillover effects of Germany`s final demand on Southern Europe

Oliver Picek and Enno Schröder

No 181-2017, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: We calibrate a closed multi-country input-output model with data from the World Input-Output Database to estimate the size of spillover effects of Germany?s final demand on GDP, employment, and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.

Keywords: euro area; macroeconomic imbalances; external adjustment; input-output analysis; global value chains; spillover effects (search for similar items in EconPapers)
JEL-codes: F14 F32 F42 C67 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-hme and nep-int
Date: 2017
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