The Effects of the CEECs ’ Accession on Sectorial Trade : A Value Added Perspective ∗

Content Provider	Semantic Scholar
Author	Kaplan, Lennart C. Kohl, Tristan
Copyright Year	2015
Abstract	The structure of international trade has changed markedly due to the processes of increased fragmentation and trends towards economic integration. Production processes are divided across borders and internationally connected through global value chains (GVCs). In this new framework it has become increasingly more important to examine which amount of domestic Value Added (VA) is embodied in final products. Furthermore, the composition of the VA needs to be analyzed to assess nation’s competitiveness in the world economy. We study the implications of economic integration in Europe with new data that account for trade in value added and its sectorial and factorial composition. Specifically, we examine the case of ten Central and Eastern European Countries (CEEC) acceding to the European Union (EU) in 2004. In order to obtain reliable estimates of accession effects, theoretically founded specifications of the well-known gravity model of trade are applied. The results are surprising: While CEEC’s value added are stimulated by EU accession, regional integration disproportionally favors trade in value added by low-skill tasks, slowing down the CEECs’ industrial upgrading process.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.econ.gatech.edu/files/seminars/KKM_2015-02-15.pdf
Language	English
Access Restriction	Open
Subject Keyword	Accession Number (identifier) Accession number (bioinformatics) Estimated European Union Fragmentation (computing) Gravity model of trade Specification Whole Earth 'Lectronic Link
Content Type	Text
Resource Type	Article