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Eu Exports To The World: Overview Of Effects On Employment And Income

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Listed:
  • Rueda-Cantuche , José M.

    (JRC)

  • Sousa, Nuno

    (DG Trade)

Abstract

KEY FINDINGS • As trade agreements create the conditions for an increase in EU exports they also foster more and better job opportunities for European citizens. From 1995 to 2011 the number of jobs in the EU that were supported by exports of goods and services to the rest of the world increased by 67% to reach around 31 million. These represented 1 in 7 jobs across the 27 EU Member States (up from 1 in 11 jobs in 1995). They tended to be high-skilled and were on average better paid. • In order to remain competitive EU exporters increasingly rely also on foreign inputs. This means that the employment they support progressively spans beyond the EU's borders. In 2011 about 19 million jobs outside the EU depended on EU exports. This means that in 2011 a total of 50 million people around the world had jobs thanks to the EU exporting industries. • Exports are important for employment in all Member States. In 2011 only in Greece (7%), Portugal (8%) and Spain (9%) did the EU exports to the rest of the world support less than 10% of total employment. In Luxembourg they supported a third of all jobs; in Ireland 25%. • Increasingly the jobs supported by EU exports are related to services. Services exports are growing fast but that is not the whole story. The importance of services sectors as suppliers of inputs to the production of the goods for export (“mode 5 services” exports) also stands out from the data. In 2011, 40% of the employment supported by the exports of the primary and manufacturing sectors was in fact in services. • The sales of goods and services to the US market were responsible for 15% of the EU employment supported by EU exports; other key markets to sustaining export-related jobs in the EU were China (10%), Russia (6%) and Turkey (4%).

Suggested Citation

  • Rueda-Cantuche , José M. & Sousa, Nuno, 2016. "Eu Exports To The World: Overview Of Effects On Employment And Income," DG TRADE Chief Economist Notes 2016-1, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2016_001
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    References listed on IDEAS

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    1. Sousa, N. & Rueda-Cantuche, J. M. & Arto, I. & Andreoni, V., 2012. "Extra - EU exports and employment," DG TRADE Chief Economist Notes 2012-2, Directorate General for Trade, European Commission.
    2. Lucian Cernat & Nuno Sousa, 2016. "The Trade and Jobs Nexus in Europe: How Important Are Mode 5 Services Exports?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(04), pages 65-67, January.
    3. Iñaki Arto & José Manuel Rueda-Cantuche & Antonio F. Amores & Erik Dietzenbacher & Nuno Sousa & Letizia Montinari & Anil Markandya, 2015. "EU Exports to the World: Effects on Employment and Income," JRC Research Reports JRC93237, Joint Research Centre.
    4. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, September.
    5. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
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    Cited by:

    1. Lalanne, Alvaro & Sánchez, Guillermo, 2020. "Evaluación del impacto de acuerdos comerciales: metodologías, experiencias internacionales y aplicaciones para el caso uruguayo," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 45070, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. José M. RUEDA‐CANTUCHE & Lucian CERNAT & Nuno SOUSA, 2019. "Trade and jobs in Europe: The role of mode 5 service exports," International Labour Review, International Labour Organization, vol. 158(1), pages 115-136, March.
    3. Di Filippo, Gabriele, 2018. "What Place does Luxembourg hold in Global Value Chains?," MPRA Paper 86235, University Library of Munich, Germany.
    4. Sinkovics, Rudolf R. & Kurt, Yusuf & Sinkovics, Noemi, 2018. "The effect of matching on perceived export barriers and performance in an era of globalization discontents: Empirical evidence from UK SMEs," International Business Review, Elsevier, vol. 27(5), pages 1065-1079.
    5. Inaki Arto & Erik Dietzenbacher & Jose Manuel Rueda-Cantuche, 2019. "Measuring bilateral trade in terms of value added," JRC Research Reports JRC116694, Joint Research Centre.
    6. Cernat, Lucian & Gerard, Daphne & Guinea, Oscar & Isella, Lorenzo, 2018. "Consumer benefits from EU trade liberalisation: How much did we save since the Uruguay Round?," DG TRADE Chief Economist Notes 2018-1, Directorate General for Trade, European Commission.

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    More about this item

    Keywords

    EU exports; income; employment;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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