Trade in parts and components across Europe

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985556%3A_____%2F16%3A00460323" target="_blank" >RIV/67985556:_____/16:00460323 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11230/16:10324069 RIV/00216208:11640/16:00460112
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Trade in parts and components across Europe
Original language description
Based on the factor-proportion gravity framework, we build a model that identifies the driving forces for trade in parts and components. We test our model empirically by using a detailed and large European data set. We show that trade in parts and components is driven by relative supply-side country differences, proxied by wages and capital labor ratios. The pattern is compatible with models of incomplete specialization and trade. We take our results as evidence for the existence of international East-West production networks in Europe, driven by tradeoffs between wages, capital labor ratios and coordination costs. Our results also reveal that (i) in response to stronger relative wage differences, trade in parts and components across Europe is predominantly conducted along the extensive margin but (ii) the potential to intensify the trade and international production network in new EU members has not been exhausted yet.
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Project
<a href="/en/project/GA15-15927S" target="_blank" >GA15-15927S: Firm production, efficiency, and corporate finance: An international perspective</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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