Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/220085
Authors: 
Friesenbichler, Klaus S.
Kügler, Agnes
Reinstaller, Andreas
Year of Publication: 
2020
Series/Report no.: 
WIFO Working Papers 602
Abstract: 
We draw on trade theory to empirically explore the effects of value chain integration on producer price dynamics. Using the EU as an example of an integrated area, we construct measures of backward and forward linkages with intra- and extra-EU trading partners at the country-sector level. We find that especially upstream integration and EU-accession dampen inflation. The results for downstream integration indicate a price-increasing relationship. We propose novel EU integration indicators and offer insights to both theory and applied research. We also add to the policy debate on the price effects of (dis-)integration of EU countries.
Subjects: 
inflation
EU integration
Single Market
producer prices
value chains
JEL: 
E31
F15
O52
Document Type: 
Working Paper

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