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Export Performance in Europe: What Do We Know from Supply Links?

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  • Jesmin Rahman
  • Mr. Tianli Zhao

Abstract

One of the most important recent developments in international trade is the increasing interconnectedness of export production through a vertical trading chain network that streches across many countries, with each country specializing in particular stages of a good’s production. Using value added trade statistics, this paper tries to dissect and reshape understanding of European exports: where exports values are created, the role of vertical supply links in export growth, what is contributing to the growth in supply links, and how comparative advantages of countries are affected by supply links over time. Our analysis finds strong role of supply links in cross-country export performance in Europe, where these links between countries grew based on physical proximity, cost differential and similarity in export structure.

Suggested Citation

  • Jesmin Rahman & Mr. Tianli Zhao, 2013. "Export Performance in Europe: What Do We Know from Supply Links?," IMF Working Papers 2013/062, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/062
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    Cited by:

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    2. Vrh, Nataša, 2015. "Pay-off to Participation in Global Value Chains: How Much are New EU Member States Lagging behind the Rest of EU Countries in Terms of Domestic Value Added in Exports?," MPRA Paper 67805, University Library of Munich, Germany.
    3. International Monetary Fund, 2015. "Central and Eastern Europe: New Member States (NMS) Policy Forum, 2014, Selected Issues Paper," IMF Staff Country Reports 2015/098, International Monetary Fund.
    4. Andrea Éltet? & Ágnes Szunomár, 2016. "Chinese investment and trade ? strengthening ties with Central and Eastern Europe," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(1), pages 24-48, February.
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    6. Gregorio Impavido & Mr. Heinz Rudolph & Mr. Luigi Ruggerone, 2013. "Bank Funding in Central, Eastern and South Eastern Europe Post Lehman: A “New Normal”?," IMF Working Papers 2013/148, International Monetary Fund.
    7. Borin, Alessandro & Mancini, Michele, 2017. "Follow the Value Added: Tracking Bilateral Relations in Global Value Chains," MPRA Paper 82692, University Library of Munich, Germany.
    8. Wang, Qiang & Han, Xinyu, 2021. "Is decoupling embodied carbon emissions from economic output in Sino-US trade possible?," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    9. Christian Buelens & Marcel Tirpák, 2017. "Reading the Footprints: How Foreign Investors Shape Countries’ Participation in Global Value Chains," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(4), pages 561-584, December.
    10. Alessandro Borin & Michele Mancini, 2015. "Follow the value added: bilateral gross export accounting," Temi di discussione (Economic working papers) 1026, Bank of Italy, Economic Research and International Relations Area.
    11. Éltető, Andrea & Udvari, Beáta, 2018. "Nemzetköziesedés a válság után - a magyar kis- és középvállalatok exportjára ható tényezők [Internationalisation since the crisis - factors affecting exports by small and medium-sized Hungarian ent," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 402-425.
    12. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    13. Rita Cappariello & Alberto Felettigh, 2015. "How does foreign demand activate domestic value added? A comparison among the largest euro-area economies," Temi di discussione (Economic working papers) 1001, Bank of Italy, Economic Research and International Relations Area.
    14. Nataša Vrh, 2017. "The convergence in domestic value-added of exports in the EU," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 405-430, July.
    15. Aleksandra Kordalska & Magdalena Olczyk, 2019. "Is Germany A Hub Of Factory Europe For Cee Countries? The Sink Approach In Gvc Decomposition," GUT FME Working Paper Series A 56, Faculty of Management and Economics, Gdansk University of Technology.
    16. Simola, Heli, 2014. "Tracing trade interdependency between EU and East Asia," BOFIT Policy Briefs 3/2014, Bank of Finland Institute for Emerging Economies (BOFIT).
    17. Óscar Rodil-Marzábal & Ana Laura Gómez Pérez & Hugo Campos-Romero, 2022. "The Global Textile and Apparel Value Chain: From Mexico–US–China Linkages to a Global Approach," Economies, MDPI, vol. 10(10), pages 1-18, October.
    18. Doris Hanzl-Weiss & Roman Stöllinger & Robert Stehrer, 2014. "Die Sachgüterproduktion Österreichs," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 133, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    19. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    20. Zhiheng Chen & Yaru Tan, 2022. "The Imbalance of Embodied CO 2 in China’s Imports, Exports and Its Causes," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    21. Jesmin Rahman & Ara Stepanyan & Jessie Yang & Mr. Li Zeng, 2015. "Exports in a Tariff-Free Environment: What Structural Reforms Matter? Evidence from the European Union Single Market," IMF Working Papers 2015/187, International Monetary Fund.
    22. Ms. Faezeh Raei & Anna Ignatenko & Borislava Mircheva, 2019. "Global Value Chains: What are the Benefits and Why Do Countries Participate?," IMF Working Papers 2019/018, International Monetary Fund.

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