Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness

Increasing fragmentation of production across borders is changing the nature of international competition. As a result, conventional indicators of competitiveness based on gross exports are becoming less informative and new measures are needed. Thi...

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Main Authors:	Timmer, Marcel P., Los, Bart, Stehrer, Robert, de Vries, Gaaitzen
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES AGRICULTURE BENCHMARK BILATERAL TRADE CLOSED ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CONTESTABILITY CURRENCY DEBT DEMAND FUNCTIONS DEVELOPMENT POLICY DIRECT VALUE DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKET DOMESTIC WORKERS DRIVERS ECONOMIC POLICY ECONOMICS ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EMPLOYMENT GROWTH ENGINES EQUIPMENT EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT SECTOR EXPORTS FACTOR PRICES FINAL GOODS FINANCIAL CRISIS FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN OWNERSHIP FOREIGN VALUE FOREIGN WORKERS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATES HARMONIZATION INCOME INCOME ELASTICITY OF DEMAND INCOMES INDUSTRIAL ECONOMY INNOVATION INPUT PRICES INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL BUSINESS INTERNATIONAL COMPETITION INTERNATIONAL TRADE INVENTORIES LABOR COSTS LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LABOUR LABOUR COSTS MACHINERY MANUFACTURES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET ECONOMY MARKETING METAL MANUFACTURING MOBILITY OF LABOR NATIONAL ECONOMY NATIONAL INCOME OPEN ECONOMIES OUTPUT RATIO OUTPUTS OUTSOURCING PARTICULAR COUNTRY PRODUCT MARKET PRODUCT MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FACTORS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INTEGRATION PRODUCTION PROCESS PRODUCTION STRUCTURE PRODUCTION STRUCTURES PRODUCTIVITY PRODUCTIVITY GROWTH RAW MATERIALS REAL INCOME REAL WAGES RETAIL RETAIL SERVICES SALES SHARE OF CAPITAL SKILLED LABOR SKILLED WORKERS SPREAD STACKING SUPPLIERS SUPPLY CHAINS TECHNOLOGICAL CHANGE TRADE POLICIES VALUE ADDED VALUE OF OUTPUT WAGE GROWTH WAGE INCREASES WAGES WHOLESALING WORK FORCE WORLD ECONOMY WORLD TRADE WTO
Online Access:	http://documents.worldbank.org/curated/en/2014/04/19344013/fragmentation-incomes-jobs-analysis-european-competitiveness http://hdl.handle.net/10986/17720

id	okr-10986-17720
recordtype	oai_dc
spelling	okr-10986-177202021-04-23T14:03:40Z Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness Timmer, Marcel P. Los, Bart Stehrer, Robert de Vries, Gaaitzen ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES AGRICULTURE BENCHMARK BILATERAL TRADE CLOSED ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CONTESTABILITY CURRENCY DEBT DEMAND FUNCTIONS DEVELOPMENT POLICY DIRECT VALUE DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKET DOMESTIC WORKERS DRIVERS ECONOMIC POLICY ECONOMICS ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EMPLOYMENT GROWTH ENGINES EQUIPMENT EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT SECTOR EXPORTS FACTOR PRICES FINAL GOODS FINANCIAL CRISIS FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN OWNERSHIP FOREIGN VALUE FOREIGN WORKERS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATES HARMONIZATION INCOME INCOME ELASTICITY OF DEMAND INCOMES INDUSTRIAL ECONOMY INNOVATION INPUT PRICES INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL BUSINESS INTERNATIONAL COMPETITION INTERNATIONAL TRADE INVENTORIES LABOR COSTS LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LABOUR LABOUR COSTS MACHINERY MANUFACTURES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET ECONOMY MARKETING METAL MANUFACTURING MOBILITY OF LABOR NATIONAL ECONOMY NATIONAL INCOME OPEN ECONOMIES OUTPUT RATIO OUTPUTS OUTSOURCING PARTICULAR COUNTRY PRODUCT MARKET PRODUCT MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FACTORS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INTEGRATION PRODUCTION PROCESS PRODUCTION STRUCTURE PRODUCTION STRUCTURES PRODUCTIVITY PRODUCTIVITY GROWTH RAW MATERIALS REAL INCOME REAL WAGES RETAIL RETAIL SERVICES SALES SHARE OF CAPITAL SKILLED LABOR SKILLED WORKERS SPREAD STACKING SUPPLIERS SUPPLY CHAINS TECHNOLOGICAL CHANGE TRADE POLICIES VALUE ADDED VALUE OF OUTPUT WAGE GROWTH WAGE INCREASES WAGES WHOLESALING WORK FORCE WORLD ECONOMY WORLD TRADE WTO Increasing fragmentation of production across borders is changing the nature of international competition. As a result, conventional indicators of competitiveness based on gross exports are becoming less informative and new measures are needed. This paper proposes an ex-post accounting framework of the value added and workers that are directly and indirectly related to the production of final manufacturing goods. The framework focuses on manufactures global value chain income and manufactures global value chain jobs. The paper outlines these concepts and provides trends in European countries based on a recent multi-sector, input-output model of the world economy. The analysis finds that since 1995, revealed comparative advantage of the European Union 27 is shifting to activities related to the production of nonelectrical machinery and transport equipment. The workers involved in manufactures global value chains are increasingly in services, rather than manufacturing industries. The analysis also finds a strong shift toward activities carried out by high-skilled workers, highlighting the uneven distributional effects of fragmentation. The results show that a global value chain perspective is needed to inform the policy debates on competitiveness. 2014-04-10T19:29:28Z 2014-04-10T19:29:28Z 2014-04 http://documents.worldbank.org/curated/en/2014/04/19344013/fragmentation-incomes-jobs-analysis-european-competitiveness http://hdl.handle.net/10986/17720 English en_US Policy Research Working Paper;No. 6833 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia
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	ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES AGRICULTURE BENCHMARK BILATERAL TRADE CLOSED ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CONTESTABILITY CURRENCY DEBT DEMAND FUNCTIONS DEVELOPMENT POLICY DIRECT VALUE DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKET DOMESTIC WORKERS DRIVERS ECONOMIC POLICY ECONOMICS ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EMPLOYMENT GROWTH ENGINES EQUIPMENT EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT SECTOR EXPORTS FACTOR PRICES FINAL GOODS FINANCIAL CRISIS FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN OWNERSHIP FOREIGN VALUE FOREIGN WORKERS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATES HARMONIZATION INCOME INCOME ELASTICITY OF DEMAND INCOMES INDUSTRIAL ECONOMY INNOVATION INPUT PRICES INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL BUSINESS INTERNATIONAL COMPETITION INTERNATIONAL TRADE INVENTORIES LABOR COSTS LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LABOUR LABOUR COSTS MACHINERY MANUFACTURES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET ECONOMY MARKETING METAL MANUFACTURING MOBILITY OF LABOR NATIONAL ECONOMY NATIONAL INCOME OPEN ECONOMIES OUTPUT RATIO OUTPUTS OUTSOURCING PARTICULAR COUNTRY PRODUCT MARKET PRODUCT MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FACTORS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INTEGRATION PRODUCTION PROCESS PRODUCTION STRUCTURE PRODUCTION STRUCTURES PRODUCTIVITY PRODUCTIVITY GROWTH RAW MATERIALS REAL INCOME REAL WAGES RETAIL RETAIL SERVICES SALES SHARE OF CAPITAL SKILLED LABOR SKILLED WORKERS SPREAD STACKING SUPPLIERS SUPPLY CHAINS TECHNOLOGICAL CHANGE TRADE POLICIES VALUE ADDED VALUE OF OUTPUT WAGE GROWTH WAGE INCREASES WAGES WHOLESALING WORK FORCE WORLD ECONOMY WORLD TRADE WTO
spellingShingle	ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES AGRICULTURE BENCHMARK BILATERAL TRADE CLOSED ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CONTESTABILITY CURRENCY DEBT DEMAND FUNCTIONS DEVELOPMENT POLICY DIRECT VALUE DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKET DOMESTIC WORKERS DRIVERS ECONOMIC POLICY ECONOMICS ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EMPLOYMENT GROWTH ENGINES EQUIPMENT EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT SECTOR EXPORTS FACTOR PRICES FINAL GOODS FINANCIAL CRISIS FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN OWNERSHIP FOREIGN VALUE FOREIGN WORKERS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATES HARMONIZATION INCOME INCOME ELASTICITY OF DEMAND INCOMES INDUSTRIAL ECONOMY INNOVATION INPUT PRICES INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL BUSINESS INTERNATIONAL COMPETITION INTERNATIONAL TRADE INVENTORIES LABOR COSTS LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LABOUR LABOUR COSTS MACHINERY MANUFACTURES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET ECONOMY MARKETING METAL MANUFACTURING MOBILITY OF LABOR NATIONAL ECONOMY NATIONAL INCOME OPEN ECONOMIES OUTPUT RATIO OUTPUTS OUTSOURCING PARTICULAR COUNTRY PRODUCT MARKET PRODUCT MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FACTORS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INTEGRATION PRODUCTION PROCESS PRODUCTION STRUCTURE PRODUCTION STRUCTURES PRODUCTIVITY PRODUCTIVITY GROWTH RAW MATERIALS REAL INCOME REAL WAGES RETAIL RETAIL SERVICES SALES SHARE OF CAPITAL SKILLED LABOR SKILLED WORKERS SPREAD STACKING SUPPLIERS SUPPLY CHAINS TECHNOLOGICAL CHANGE TRADE POLICIES VALUE ADDED VALUE OF OUTPUT WAGE GROWTH WAGE INCREASES WAGES WHOLESALING WORK FORCE WORLD ECONOMY WORLD TRADE WTO Timmer, Marcel P. Los, Bart Stehrer, Robert de Vries, Gaaitzen Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
geographic_facet	Europe and Central Asia
relation	Policy Research Working Paper;No. 6833
description	Increasing fragmentation of production across borders is changing the nature of international competition. As a result, conventional indicators of competitiveness based on gross exports are becoming less informative and new measures are needed. This paper proposes an ex-post accounting framework of the value added and workers that are directly and indirectly related to the production of final manufacturing goods. The framework focuses on manufactures global value chain income and manufactures global value chain jobs. The paper outlines these concepts and provides trends in European countries based on a recent multi-sector, input-output model of the world economy. The analysis finds that since 1995, revealed comparative advantage of the European Union 27 is shifting to activities related to the production of nonelectrical machinery and transport equipment. The workers involved in manufactures global value chains are increasingly in services, rather than manufacturing industries. The analysis also finds a strong shift toward activities carried out by high-skilled workers, highlighting the uneven distributional effects of fragmentation. The results show that a global value chain perspective is needed to inform the policy debates on competitiveness.
format	Publications & Research :: Policy Research Working Paper
author	Timmer, Marcel P. Los, Bart Stehrer, Robert de Vries, Gaaitzen
author_facet	Timmer, Marcel P. Los, Bart Stehrer, Robert de Vries, Gaaitzen
author_sort	Timmer, Marcel P.
title	Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
title_short	Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
title_full	Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
title_fullStr	Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
title_full_unstemmed	Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness
title_sort	fragmentation, incomes, and jobs : an analysis of european competitiveness
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/04/19344013/fragmentation-incomes-jobs-analysis-european-competitiveness http://hdl.handle.net/10986/17720
_version_	1764438267165409280

Fragmentation, Incomes, and Jobs : An Analysis of European Competitiveness

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