Capital Dynamics, Global Value Chains, Competitiveness and Barriers to FDI and Capital Accumulation in the EU

Amat Adarov and Robert Stehrer

No 446, wiiw Research Reports from The Vienna Institute for International Economic Studies, wiiw

Abstract: The study analyses the relationships between capital dynamics, productivity, global value chains and foreign direct investment using panel data techniques. Among other results, we confirm the high importance of tangible and intangible ICT capital for productivity and GVC integration. We examine the extent of underinvestment in ICT in the EU relative to other major economies and identify bottlenecks for efficient capital allocation. The sluggish economic performance of the EU in the post-crisis period has been further challenged by the COVID-19 outbreak. Consolidating policy efforts to facilitate ICT investment, tackling the barriers to ICT adoption and broad-based digitalisation are critical for the EU in order to maintain a competitive edge and unlock new growth opportunities in the new normal.

Keywords: Productivity; digitalisation; ICT capital; FDI; global value chains; barriers to ICT investments; intangible capital (search for similar items in EconPapers)
JEL-codes: E22 F14 F15 F21 O47 (search for similar items in EconPapers)
Pages: 63 pages including 13 Tables and 31 Figures
Date: 2020-06
New Economics Papers: this item is included in nep-cse, nep-eec, nep-eff, nep-ict, nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Capital dynamics, global value chains, competitiveness and barriers to FDI and capital accumulation in the EU (2020)
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