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Trade in parts and components across Europe
[working paper]
Corporate Editor
Institut für Ost- und Südosteuropaforschung (IOS)
Abstract With the rise of global value chains, trade in intermediates now accounts for more than two-thirds of total trade. This column provides evidence that trade in parts and components of capital goods between new and old EU countries is driven by wage differences across countries. It further shows that ... view more
With the rise of global value chains, trade in intermediates now accounts for more than two-thirds of total trade. This column provides evidence that trade in parts and components of capital goods between new and old EU countries is driven by wage differences across countries. It further shows that wage differences play an especially important role in the ex ante investment decision to establish a new production network.... view less
Keywords
commerce; capital goods; wage difference; investment; decision; EU
Classification
National Economy
Document language
English
Publication Year
2016
City
Regensburg
Page/Pages
3 p.
Series
IOS Policy Issues, 10
ISSN
2199-9473
Status
Published Version; reviewed