Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176963
Authors: 
Nordström, Hakan
Flam, Harry
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 6944
Abstract: 
Measured by trade in intermediate inputs, economic integration has increased between 2000 and 2014 between members of the European Union and even more with non-members. Integration is negatively related to economic size and positively to the number of years as a member. Germany is the largest hub in the production network and the centre of gravity has moved eastward. Older member states are increasingly exporting service inputs and new member states primary and manufacturing inputs. Wages are increasing faster in countries with low initial wages, indicating wage convergence as a result of production integration.
Subjects: 
global value chains
economic integration
input-output models
wage convergence
JEL: 
E10
F10
F60
J31
Document Type: 
Working Paper

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