Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness

Timmer, Marcel P.; Los, Bart; Stehrer, Robert; de Vries, Gaaitzen

Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness

Autores

Editor

World Bank, Washington, DC

Descripción

Increasing fragmentation of production across borders is changing the nature of international competition. As a result, conventional indicators of competitiveness based on gross exports are becoming less informative and new measures are needed. This paper proposes an ex-post accounting framework of the value added and workers that are directly and indirectly related to the production of final manufacturing goods. The framework focuses on manufactures global value chain income and manufactures global value chain jobs. The paper outlines these concepts and provides trends in European countries based on a recent multi-sector, input-output model of the world economy. The analysis finds that since 1995, revealed comparative advantage of the European Union 27 is shifting to activities related to the production of nonelectrical machinery and transport equipment. The workers involved in manufactures global value chains are increasingly in services, rather than manufacturing industries. The analysis also finds a strong shift toward activities carried out by high-skilled workers, highlighting the uneven distributional effects of fragmentation. The results show that a global value chain perspective is needed to inform the policy debates on competitiveness.

Palabras clave

ACCOUNTING, ADVANCED COUNTRIES, ADVANCED ECONOMIES, AGRICULTURE, BENCHMARK, BILATERAL TRADE, CLOSED ECONOMY, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITIVENESS, CONSUMERS, CONTESTABILITY, CURRENCY, DEBT, DEMAND FUNCTIONS, DEVELOPMENT POLICY, DIRECT VALUE, DISTRIBUTION OF INCOME, DOMESTIC ECONOMY, DOMESTIC MARKET, DOMESTIC WORKERS, DRIVERS, ECONOMIC POLICY, ECONOMICS, ELASTICITY, EMERGING ECONOMIES, EMERGING MARKETS, EMPLOYMENT, EMPLOYMENT GROWTH, ENGINES, EQUIPMENT, EXCHANGE RATE, EXCHANGE RATE MOVEMENTS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORT MARKETS, EXPORT SECTOR, EXPORTS, FACTOR PRICES, FINAL GOODS, FINANCIAL CRISIS, FINANCIAL SERVICES, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENTS, FOREIGN OWNERSHIP, FOREIGN VALUE, FOREIGN WORKERS, FUTURE RESEARCH, GDP, GENERAL EQUILIBRIUM, GLOBAL MARKET, GLOBAL MARKETS, GLOBALIZATION, GROSS DOMESTIC PRODUCT, GROWTH RATES, HARMONIZATION, INCOME, INCOME ELASTICITY OF DEMAND, INCOMES, INDUSTRIAL ECONOMY, INNOVATION, INPUT PRICES, INTERMEDIATE GOODS, INTERMEDIATE PRODUCTS, INTERNATIONAL BUSINESS, INTERNATIONAL COMPETITION, INTERNATIONAL TRADE, INVENTORIES, LABOR COSTS, LABOR FORCE, LABOR MIGRATION, LABOR PRODUCTIVITY, LABOUR, LABOUR COSTS, MACHINERY, MANUFACTURES, MANUFACTURING, MANUFACTURING INDUSTRIES, MANUFACTURING INDUSTRY, MANUFACTURING PRODUCTION, MANUFACTURING SECTOR, MARKET ECONOMY, MARKETING, METAL MANUFACTURING, MOBILITY OF LABOR, NATIONAL ECONOMY, NATIONAL INCOME, OPEN ECONOMIES, OUTPUT RATIO, OUTPUTS, OUTSOURCING, PARTICULAR COUNTRY, PRODUCT MARKET, PRODUCT MARKETS, PRODUCTION CAPACITY, PRODUCTION COSTS, PRODUCTION FACTORS, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTION INTEGRATION, PRODUCTION PROCESS, PRODUCTION STRUCTURE, PRODUCTION STRUCTURES, PRODUCTIVITY, PRODUCTIVITY GROWTH, RAW MATERIALS, REAL INCOME, REAL WAGES, RETAIL, RETAIL SERVICES, SALES, SHARE OF CAPITAL, SKILLED LABOR, SKILLED WORKERS, SPREAD, STACKING, SUPPLIERS, SUPPLY CHAINS, TECHNOLOGICAL CHANGE, TRADE POLICIES, VALUE ADDED, VALUE OF OUTPUT, WAGE GROWTH, WAGE INCREASES, WAGES, WHOLESALING, WORK FORCE, WORLD ECONOMY, WORLD TRADE, WTO