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The network effect of deglobalisation on European regions

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  • Giammetti, Raffaele
  • Papi, Luca
  • Teobaldelli, Desiree
  • Ticchi, Davide

Abstract

This paper investigates the effects of a retreat from global economic integration on the European regional production network for the period 2000-2010. We find that production has become increasingly fragmented, although the degree of heterogeneity across regions is substantial. This heterogeneity is also present in the direct and indirect effects of three different deglobalisation scenarios that we simulate. Our results show that deglobalisation generates winners and losers. Specifically, two groups of regions emerge; regions that would benefit from a return to a less integrated world, and regions that would instead gain from a strengthening of the European production network.

Suggested Citation

  • Giammetti, Raffaele & Papi, Luca & Teobaldelli, Desiree & Ticchi, Davide, 2021. "The network effect of deglobalisation on European regions," MPRA Paper 111135, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111135
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    References listed on IDEAS

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    4. Colantone, Italo & Ottaviano, Gianmarco & Stanig, Piero, 2021. "The backlash of globalization," LSE Research Online Documents on Economics 113860, London School of Economics and Political Science, LSE Library.
    5. Pieter IJtsma & Bart Los, 2020. "UK Regions in Global Value Chains," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2020-08, Economic Statistics Centre of Excellence (ESCoE).
    6. Andre Carrascal Incera & Anastasios Kitsos & Diana Gutierrez Posada, 2022. "Universities, students and regional economies: a symbiotic relationship?," Regional Studies, Taylor & Francis Journals, vol. 56(6), pages 892-908, June.
    7. Italo Colantone & Gianmarco I.P. Ottaviano & Piero Stanig, 2021. "The Backlash of Globalization," CESifo Working Paper Series 9289, CESifo.
    8. Sébastien Miroudot, 2020. "Reshaping the policy debate on the implications of COVID-19 for global supply chains," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 430-442, December.
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    Cited by:

    1. Ludovic Panon & Laura Lebastard & Michele Mancini & Alessandro Borin & Peonare Caka & Gianmarco Cariola & Dennis Essers & Elena Gentili & Andrea Linarello & Tullia Padellini & Francisco Requena & Jaco, 2024. "Inputs in Distress: Geoeconomic Fragmentation and Firms’ Sourcing," Working Papers 2436, Banco de España.
    2. Huiwen Gong & Robert Hassink & Christopher Foster & Martin Hess & Harry Garretsen, 2022. "Globalisation in reverse? Reconfiguring the geographies of value chains and production networks [Does Covid-19 Spark the End of Globalisation?]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(2), pages 165-181.
    3. Andrea Coveri & Elena Paglialunga & Antoenllo Zanfei, 2024. "Functional specialization and upgrading in European regions:new insights from FDI data," Working Papers 2401, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2024.
    4. Shanks, Olga, 2024. "Increasing returns to scale and markups," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 257-267.
    5. Brondino, Gabriel & Lucero, Joaquín & Roitbarg, Hernán, 2023. "Productive specialization and integration in South America: A global input–output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 89-97.
    6. Roberta Capello & Roberto Dellisanti & Giovanni Perucca, 2024. "At the territorial roots of global processes: Heterogeneous modes of regional involvement in Global Value Chains," Environment and Planning A, , vol. 56(3), pages 833-848, May.
    7. Coveri, Andrea & Paglialunga, Elena & Zanfei, Antonello, 2024. "Global value chains and within-country inequality: The role of functional positioning," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 382-397.

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    More about this item

    Keywords

    Reshoring; Global Value Chains; production networks; input-output; regional fragmentation; supply chains interruption.;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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