Factory Europe? Brainier but Not Brawnier
While intermediates comprise the majority of total goods trade in the European Union (EU), their share of total trade has remained flat since 1996. This implies that EU enlargement has had a limited effect on the size of Factory Europe. However, en...
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| Format: | Background Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26228477/factory-europe-brainier-not-brawnier http://hdl.handle.net/10986/24495 |
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okr-10986-244952021-04-23T14:04:21Z Factory Europe? Brainier but Not Brawnier Behar, Alberto Freund, Caroline TARIFFS GROWTH RATES HARMONIZATION TRADE VOLUMES TRANSPORT SECTOR CUSTOMS UNION GRAVITY FRAMEWORK PATTERN OF SPECIALIZATION TARIFF RATES PRODUCTION SUNK COSTS AUTOMOTIVE INDUSTRY BARRIER MULTINATIONAL CORPORATIONS REGIONAL TRADE AGREEMENTS GLOBAL MARKETS INCOME INTEREST VEHICLES GDP PER CAPITA CONSUMER GOODS EXPORTS TREND TRADE FLOWS EXPORTERS WORLD DEVELOPMENT INDICATORS WELFARE ECONOMIC POLICY NEW PRODUCTS FREE TRADE AGREEMENTS BILATERAL TRADE AGREEMENTS INPUTS NET EXPORTER RETURNS TO SCALE FREE TRADE CAR INDUSTRY TRENDS TRADE AGREEMENTS FINAL GOODS INCREASING RETURNS TO SCALE PREFERENTIAL TRADE AGREEMENTS LEGAL SYSTEMS IMPORT DATA INFLUENCE TRANSPORT ECONOMICS TOTAL FACTOR PRODUCTIVITY ROAD GLOBAL ECONOMY COSTS DEVELOPMENT ECONOMICS TRANSPORT NEW PRODUCT REGIONAL TRADE CUSTOMS SPECIALIZATION PRODUCTIVITY INCREASING RETURNS TARIFF REDUCTIONS ACCESS INTERNATIONAL ECONOMICS IMPORTS TRADE POLICY TRANSPORT EQUIPMENT BASKET OF GOODS INVENTORIES LEGAL FRAMEWORK INFRASTRUCTURE INDUSTRY TRADE MARKET ECONOMY PATTERN OF TRADE BORDER TRADE CONSUMPTION PRODUCTIVITY GROWTH TECHNOLOGICAL CHANGE DRIVING VALUE ADDED TRADE BALANCES TRAVEL TRANSIT WAGES INTERNATIONAL TRADE REGIONALISM ECONOMETRIC ANALYSIS BARRIERS TRADE COSTS CARS REPUTATION VALUE COMPETITIVENESS WORLD ECONOMY TRADE DEFICIT WORKING CAPITAL INTERMEDIATE GOODS AGRICULTURE CONSUMERS MEASUREMENT SHARES INDUSTRIAL PRODUCTS TRANSACTION COSTS TRADE DEFICITS BENCHMARK TARIFF LEVELS AUTOMOTIVE SECTOR CAR SALES OUTPUT REGRESSION ANALYSIS CAPITAL GOODS CAR ROAD VEHICLES TRADE BILATERAL IMPORTS GDP TRADE PARTNERS GOODS THEORY BILATERAL TRADE VERTICAL SPECIALIZATION CUSTOMS UNIONS COMPARATIVE ADVANTAGE SHARE PREFERENTIAL TRADE TARIFF HIGH TRANSPORT EXPORT BASKET MONOPOLISTIC COMPETITION WORLD TRADE INTELLECTUAL PROPERTY TOTAL OUTPUT CUSTOMERS INTERMEDIATE INPUTS TRANSPORT COSTS ECONOMICS RESEARCH ROAD TRANSPORT SOURCING OUTSOURCING COMPETITION While intermediates comprise the majority of total goods trade in the European Union (EU), their share of total trade has remained flat since 1996. This implies that EU enlargement has had a limited effect on the size of Factory Europe. However, enlargement coincides with an increase in Factory Europe’s complexity. Using two new measures of the complexity of intermediates products, we show that internal EU intermediates trade has become more sophisticated and uses more relationship-specific inputs over time and relative to external EU trade. In other words, Factory Europe has become brainier but not necessarily brawnier. There is also an asymmetry. While the 1995 EU members have not become more significant trading partners for the new members, the new members have become a more important source of intermediates for the EU15 and also a more important market. In sum, the structure of EU trade has changed--not only is the EU15 giving the new members a bigger share of its tasks, it is also giving them harder ones. 2016-06-09T21:58:03Z 2016-06-09T21:58:03Z 2011-04 Background Paper http://documents.worldbank.org/curated/en/2016/04/26228477/factory-europe-brainier-not-brawnier http://hdl.handle.net/10986/24495 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Europe and Central Asia Europe European Union |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TARIFFS GROWTH RATES HARMONIZATION TRADE VOLUMES TRANSPORT SECTOR CUSTOMS UNION GRAVITY FRAMEWORK PATTERN OF SPECIALIZATION TARIFF RATES PRODUCTION SUNK COSTS AUTOMOTIVE INDUSTRY BARRIER MULTINATIONAL CORPORATIONS REGIONAL TRADE AGREEMENTS GLOBAL MARKETS INCOME INTEREST VEHICLES GDP PER CAPITA CONSUMER GOODS EXPORTS TREND TRADE FLOWS EXPORTERS WORLD DEVELOPMENT INDICATORS WELFARE ECONOMIC POLICY NEW PRODUCTS FREE TRADE AGREEMENTS BILATERAL TRADE AGREEMENTS INPUTS NET EXPORTER RETURNS TO SCALE FREE TRADE CAR INDUSTRY TRENDS TRADE AGREEMENTS FINAL GOODS INCREASING RETURNS TO SCALE PREFERENTIAL TRADE AGREEMENTS LEGAL SYSTEMS IMPORT DATA INFLUENCE TRANSPORT ECONOMICS TOTAL FACTOR PRODUCTIVITY ROAD GLOBAL ECONOMY COSTS DEVELOPMENT ECONOMICS TRANSPORT NEW PRODUCT REGIONAL TRADE CUSTOMS SPECIALIZATION PRODUCTIVITY INCREASING RETURNS TARIFF REDUCTIONS ACCESS INTERNATIONAL ECONOMICS IMPORTS TRADE POLICY TRANSPORT EQUIPMENT BASKET OF GOODS INVENTORIES LEGAL FRAMEWORK INFRASTRUCTURE INDUSTRY TRADE MARKET ECONOMY PATTERN OF TRADE BORDER TRADE CONSUMPTION PRODUCTIVITY GROWTH TECHNOLOGICAL CHANGE DRIVING VALUE ADDED TRADE BALANCES TRAVEL TRANSIT WAGES INTERNATIONAL TRADE REGIONALISM ECONOMETRIC ANALYSIS BARRIERS TRADE COSTS CARS REPUTATION VALUE COMPETITIVENESS WORLD ECONOMY TRADE DEFICIT WORKING CAPITAL INTERMEDIATE GOODS AGRICULTURE CONSUMERS MEASUREMENT SHARES INDUSTRIAL PRODUCTS TRANSACTION COSTS TRADE DEFICITS BENCHMARK TARIFF LEVELS AUTOMOTIVE SECTOR CAR SALES OUTPUT REGRESSION ANALYSIS CAPITAL GOODS CAR ROAD VEHICLES TRADE BILATERAL IMPORTS GDP TRADE PARTNERS GOODS THEORY BILATERAL TRADE VERTICAL SPECIALIZATION CUSTOMS UNIONS COMPARATIVE ADVANTAGE SHARE PREFERENTIAL TRADE TARIFF HIGH TRANSPORT EXPORT BASKET MONOPOLISTIC COMPETITION WORLD TRADE INTELLECTUAL PROPERTY TOTAL OUTPUT CUSTOMERS INTERMEDIATE INPUTS TRANSPORT COSTS ECONOMICS RESEARCH ROAD TRANSPORT SOURCING OUTSOURCING COMPETITION |
| spellingShingle |
TARIFFS GROWTH RATES HARMONIZATION TRADE VOLUMES TRANSPORT SECTOR CUSTOMS UNION GRAVITY FRAMEWORK PATTERN OF SPECIALIZATION TARIFF RATES PRODUCTION SUNK COSTS AUTOMOTIVE INDUSTRY BARRIER MULTINATIONAL CORPORATIONS REGIONAL TRADE AGREEMENTS GLOBAL MARKETS INCOME INTEREST VEHICLES GDP PER CAPITA CONSUMER GOODS EXPORTS TREND TRADE FLOWS EXPORTERS WORLD DEVELOPMENT INDICATORS WELFARE ECONOMIC POLICY NEW PRODUCTS FREE TRADE AGREEMENTS BILATERAL TRADE AGREEMENTS INPUTS NET EXPORTER RETURNS TO SCALE FREE TRADE CAR INDUSTRY TRENDS TRADE AGREEMENTS FINAL GOODS INCREASING RETURNS TO SCALE PREFERENTIAL TRADE AGREEMENTS LEGAL SYSTEMS IMPORT DATA INFLUENCE TRANSPORT ECONOMICS TOTAL FACTOR PRODUCTIVITY ROAD GLOBAL ECONOMY COSTS DEVELOPMENT ECONOMICS TRANSPORT NEW PRODUCT REGIONAL TRADE CUSTOMS SPECIALIZATION PRODUCTIVITY INCREASING RETURNS TARIFF REDUCTIONS ACCESS INTERNATIONAL ECONOMICS IMPORTS TRADE POLICY TRANSPORT EQUIPMENT BASKET OF GOODS INVENTORIES LEGAL FRAMEWORK INFRASTRUCTURE INDUSTRY TRADE MARKET ECONOMY PATTERN OF TRADE BORDER TRADE CONSUMPTION PRODUCTIVITY GROWTH TECHNOLOGICAL CHANGE DRIVING VALUE ADDED TRADE BALANCES TRAVEL TRANSIT WAGES INTERNATIONAL TRADE REGIONALISM ECONOMETRIC ANALYSIS BARRIERS TRADE COSTS CARS REPUTATION VALUE COMPETITIVENESS WORLD ECONOMY TRADE DEFICIT WORKING CAPITAL INTERMEDIATE GOODS AGRICULTURE CONSUMERS MEASUREMENT SHARES INDUSTRIAL PRODUCTS TRANSACTION COSTS TRADE DEFICITS BENCHMARK TARIFF LEVELS AUTOMOTIVE SECTOR CAR SALES OUTPUT REGRESSION ANALYSIS CAPITAL GOODS CAR ROAD VEHICLES TRADE BILATERAL IMPORTS GDP TRADE PARTNERS GOODS THEORY BILATERAL TRADE VERTICAL SPECIALIZATION CUSTOMS UNIONS COMPARATIVE ADVANTAGE SHARE PREFERENTIAL TRADE TARIFF HIGH TRANSPORT EXPORT BASKET MONOPOLISTIC COMPETITION WORLD TRADE INTELLECTUAL PROPERTY TOTAL OUTPUT CUSTOMERS INTERMEDIATE INPUTS TRANSPORT COSTS ECONOMICS RESEARCH ROAD TRANSPORT SOURCING OUTSOURCING COMPETITION Behar, Alberto Freund, Caroline Factory Europe? Brainier but Not Brawnier |
| geographic_facet |
Europe and Central Asia Europe European Union |
| description |
While intermediates comprise the
majority of total goods trade in the European Union (EU),
their share of total trade has remained flat since 1996.
This implies that EU enlargement has had a limited effect on
the size of Factory Europe. However, enlargement coincides
with an increase in Factory Europe’s complexity. Using two
new measures of the complexity of intermediates products, we
show that internal EU intermediates trade has become more
sophisticated and uses more relationship-specific inputs
over time and relative to external EU trade. In other words,
Factory Europe has become brainier but not necessarily
brawnier. There is also an asymmetry. While the 1995 EU
members have not become more significant trading partners
for the new members, the new members have become a more
important source of intermediates for the EU15 and also a
more important market. In sum, the structure of EU trade has
changed--not only is the EU15 giving the new members a
bigger share of its tasks, it is also giving them harder ones. |
| format |
Background Paper |
| author |
Behar, Alberto Freund, Caroline |
| author_facet |
Behar, Alberto Freund, Caroline |
| author_sort |
Behar, Alberto |
| title |
Factory Europe? Brainier but Not Brawnier |
| title_short |
Factory Europe? Brainier but Not Brawnier |
| title_full |
Factory Europe? Brainier but Not Brawnier |
| title_fullStr |
Factory Europe? Brainier but Not Brawnier |
| title_full_unstemmed |
Factory Europe? Brainier but Not Brawnier |
| title_sort |
factory europe? brainier but not brawnier |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/04/26228477/factory-europe-brainier-not-brawnier http://hdl.handle.net/10986/24495 |
| _version_ |
1764456634158940160 |