Can Value Chain Integration Explain the Diverging Economic Performance within the EU?

Agnes Kügler, Andreas Reinstaller () and Klaus Friesenbichler

No 650, WIFO Working Papers from WIFO

Abstract: This paper studies the interplay of integration into EU value chains and industrial development measured by labour productivity. Our integration indicator measures value chain trade within the Single Market relative to global value chain networks. Using a simultaneous equation model, we find an overall positive effect of integration on labour productivity, which is driven by upstream integration. Highly productive industries rather seek global value chain trade than regional integration, though. Better domestic institutions facilitate EU integration, although they favour industries with less complex product portfolios and lower levels of knowledge cumulativeness.

Keywords: EU integration; Value chains; Productivity; Institutions; Industrial development; Product complexity (search for similar items in EconPapers)
Pages: 40 pages
Date: 2022-11-16
New Economics Papers: this item is included in nep-eec, nep-eff and nep-int
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https://www.wifo.ac.at/wwa/pubid/69924 abstract (text/html)

Related works:
Journal Article: Can value chain integration explain the diverging economic performance within the EU? (2023)
Working Paper: Can value chain integration explain the diverging economic performance within the EU? (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2022:i:650

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