David Martínez Turégano, Robert Marschinski, 11 August 2020

The EU’s falling share in global manufacturing has fuelled concerns about an overall loss of competitiveness. However, sectoral idiosyncrasies are strong and advise against a ‘one-size-fits-all’ policy intervention. This column uses the World Input-Output Tables to decompose the value added for manufacturing value chains and study the drivers of EU’s relative decline. Competitiveness concerns are most warranted for electronics, a key sector for productivity and innovation. The EU’s global share in electronics has fallen even more than in total manufacturing, without evidence that specialisation in other segments of this value chain could significantly mitigate the trend.

Giorgio Barba Navaretti, Giacomo Calzolari, Andrea Dossena, Alessandra Lanza, Alberto Pozzolo, 07 June 2020

The effects of the Covid-19 lockdowns have been severe worldwide. Although most activities were reopened in May, Italian GDP is expected to drop by around 10% in 2020. This column argues that a targeted exit from the lockdown in Italy could have been implemented instead. It identifies those activities with the greatest impact on the national economy, but with low risks for those returning to work and for the country at large. The methodology could also be applied in other countries and in the in the unfortunate event of a new wave of contagion and a new lockdown.

Bernhard Michel, Caroline Hambÿe, Bart Hertveldt, 21 January 2019

Domestic value creation is shaped by how and to what extent economies integrate into global value chains. This column argues that further insights can be gained by distinguishing export-oriented and domestic market firms in standard indicators of global value chain integration and participation. Using data for Belgium, it documents that export-oriented firms differ from domestic market firms in terms of input structure and import patterns. These two types of firms play different roles in determining the nature of a country’s global value chain participation.

Wen Chen, Bart Los, Philip McCann, Raquel Ortega-Argiles , Mark Thissen, Frank van Oort, 19 December 2017

Analyses of the impact of various types of Brexit at the national level hide a lot of regional economic heterogeneity. This column deploys a new interregional dataset to quantify the shares of regional labour income that are exposed to the implications of Brexit for trade, taking into account the indirect effects of supply chain relations. The results show that much more is at stake for UK regions than for the rest of the EU, with the exception of Ireland.

Hubert Escaith, Marcel Timmer, 13 May 2012

Global value chains and the international fragmentation of production challenge well-established trade policy models and raise new issues. Yet research has been hindered by the limited availability of proper statistics. This column introduces the World Input-Output Database (WIOD), a new public data source that offers unique opportunities to study the effects of fragmentation on a range of socioeconomic and environmental issues.


CEPR Policy Research