Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267716 
Year of Publication: 
2022
Series/Report no.: 
WIFO Working Papers No. 650
Publisher: 
Austrian Institute of Economic Research (WIFO), Vienna
Abstract: 
This paper studies the interplay of integration into EU value chains and industrial development measured by labour productivity. Our integration indicator measures value chain trade within the Single Market relative to global value chain networks. Using a simultaneous equation model, we find an overall positive effect of integration on labour productivity, which is driven by upstream integration. Highly productive industries rather seek global value chain trade than regional integration, though. Better domestic institutions facilitate EU integration, although they favour industries with less complex product portfolios and lower levels of knowledge cumulativeness.
Subjects: 
EU integration
Value chains
Productivity
Institutions
Industrial development
Product complexity
JEL: 
F13
F14
O25
O43
O52
Document Type: 
Working Paper

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