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Focussing on the global trade collapse and the subsequent recovery period, this paper examines the export performance of firms that are involved in complex internationalization strategies, which are typically associated with GVC engagement. Using a random-effects probit model with panel data and a dynamic panel data, it is found that, once firm characteristics are controlled for, complex internationalization plays an important role in continuing to export and, additionally, positively influences the level of exports. Thus, firms active in a complex mix of internationalization strategies have an added advantage, which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood of ceasing exporting and to higher export values. The analysis goes one-step further and investigate whether the impact is different during the trade collapse in 2009 and the following recovery. Here previous empirical research at firm level on the role of GVCs in trade is contradictory. The present paper throws light on this question by showing that the negative impact of trade collapse in 2009 on export level was lower for GVC-involved firms and the subsequent recovery has been more intense.

This paper focuses on analysing the complexity level of the basket of parts and components exported by EU countries and how it is related to trade linked to international production networks. Three blocks of EU countries, which enjoy different available comparative advantages, are distinguished (Core, New Periphery and Old Periphery). Our analysis show that more than one third of exports of P&Cs are of very high complexity in the three blocks of countries. By estimating a panel data gravity model, we find that the higher the product complexity, the higher the volume of trade linked to international production networks, with the impact larger for the EU Core countries that exhibit a wider set of high capabilities.

Drawing on the literature that has shown the prevalence of short-lived trade relationships, the aim of this paper is to provide further understanding about this issue by exploring the impact of engaging in Global Value Chains (GVCs) on the chance of export survival at product-country level. We also investigate whether the type of GVC participation (backward or forward) matters for export survival. Furthermore, we consider the level of development of countries with which GVC linkages are established. Our findings endorse the hypothesis that deeper participation in GVCs is a key factor in explaining stability in trade relationships, mainly for developing countries where the trade flows are especially fragile. We also find different effects depending on the type of GVC involvement and on whether the value chain partners are advanced or developing.

Using data from the OECD Inter-Country Input-Output database, we explore the impact of foreign services value added content of exports on export performance, specifically on duration of trade. Our data show that the share of foreign services content in manufacturing exports grows from 1995 to 2014, in a way similar to foreign goods content, and in contrast to the decreasing share of domestic services. Moreover, the share of foreign services value added content is larger for developing and emerging countries than for advanced countries. Our econometric findings confirm that foreign services value added embodied in manufacturing exports contribute positively to more resilient exports relationships, a positive effect which occurs for the three groups of manufacturing industries (high, medium and low technology industries) and, for each group, it is more pronounced for developing and emerging economies.

Using data from the OECD Inter-Country Input-Output database, we explore the impact of foreign services value added content of exports on export performance, specifically on duration of trade. Our data show that the share of foreign services content in manufacturing exports grows from 1995 to 2014, in a way similar to foreign goods content, and in contrast to the decreasing share of domestic services. Moreover, the share of foreign services value added content is larger for developing and emerging countries than for advanced countries. Our econometric findings confirm that foreign services value added embodied in manufacturing exports contribute positively to more resilient exports relationships, a positive effect which occurs for the three groups of manufacturing industries (high, medium and low technology industries) and, for each group, it is more pronounced for developing and emerging economies.

Drawing on the literature that has shown the prevalence of short-lived trade relationships, the aim of this paper is to provide further understanding about this issue by exploring the impact of engaging in Global Value Chains (GVCs) on the chance of export survival at product-country level. We also investigate whether the type of GVC participation (backward or forward) matters for export survival. Furthermore, we consider the level of development of countries with which GVC linkages are established. Our findings endorse the hypothesis that deeper participation in GVCs is a key factor in explaining stability in trade relationships, mainly for developing countries where the trade flows are especially fragile. We also find different effects depending on the type of GVC involvement and on whether the value chain partners are advanced or developing.

Este trabajo analiza la estrategia de fragmentación internacional de la producción y la conformación de redes transnacionales en la Unión Europea. A partir de la estimación, con diferentes técnicas, de un modelo de gravedad con datos de comercio de partes y componentes para el sector de la maquinaria y material de transporte, encontramos el papel protagonista que tienen las economías Centrales, y en particular Alemania, en tales redes. Factores como la pertenencia a la UE, la cercanía geográfica y lingüística y la calidad institucional más directamente vinculada al funcionamiento de sector empresarial favorecen el establecimiento y la intensidad de estas cadenas transnacionales de producción. Sin embargo, las diferencias económicas excesivas entre países suponen un lastre cuando se trata de los países Centrales de la UE, mientras que para los países de la Periferia Sur y Este suponen un impulso, apuntando al diferente perfil de integración en redes de unas y otras economías This paper focuses on analyzing the strategy of international fragmentation of production and the evolution of the cross-border networks in the European Union. Using a gravity model for trade in parts and components in Machinery and Transport Equipment, our results emphasize the important role of the Core EU economies, in particular Germany, in these networks. Factors such as belonging to the EU as well as the geographical and linguistic proximity and the institutional quality closely linked to the business sector favor the establishment and the intensity of the cross-border production chains. However, excessive economic differences between countries suppose, for the Core EU economies, an obstacle for the functioning of these sharing production networks, whereas for the East and South Periphery those differences suppose an impulse, pointing at the dissimilar profile of these areas (Core and Periphery) in the integration in global networks

The aim of this paper is to investigate whether the probability of ceasing to export is lower for firms that simultaneously import intermediate inputs and export (vertically specialized firms à la Hummels et al., The Nature and Growth of Vertical Specialization in World Trade, 2001), once other firm characteristics are controlled for. On the basis of the estimation of a random-effects probit model with panel data, the authors find that the superior characteristics of this type of twoway trading firms (in terms of size, productivity, foreign ownership and skilled labor) explain their greater resistance to losing their status as exporters. However, for small firms, even when these distinctive features are controlled for, sourcing inputs from abroad plays an important role in continuing to export. Thus, it seems that small firms which are both importer of intermediates and exporter have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood that they will stop exporting.

The aim of this paper is to investigate whether the probability of ceasing exports is lower for firms that are integrated in transnational production chains, once other firm characteristics are controlled for. On the basis of the estimation of a random-effects probit model with panel data, we find that the superior characteristics of firms involved in global networks (in terms of productivity, foreign ownership and skilled labor) explain their greater resistance to losing their status as exporters. However, for small firms, even when these distinctive features are controlled for, integration in international networks plays an important role in continuing to export. Thus, it seems that small firms which participate in networks have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood that they will stop exporting.

El objetivo de este trabajo es avanzar en el conocimiento sobre la participación de la industria española en redes de producción internacional. La estimación de los determinantes de los flujos comerciales de partes y componentes a partir de un modelo de gravedad ampliado con datos de panel para el periodo 1990-2007 permite delimitar la naturaleza de esta participación y deslindar, de una parte, el papel que juegan las diferencias tecnológicas y en dotación factorial de España con sus socios comerciales y de otra, la pertenencia a la Unión Europea. Los resultados obtenidos muestran que la participación española en los procesos de fragmentación de la producción internacional se produce mayoritariamente en el ámbito europeo, respondiendo a variables relacionadas con su ventaja comparativa frente a sus socios comerciales y habiendo sido la creación de la UE un elemento fundamental de impulso a este tipo de comercio. Además, se ha puesto de manifiesto que factores como la cercanía geográfica y la disponibilidad de unas estructuras de transporte y telecomunicaciones de buena calidad han favorecido este comercio intermedio, compensando la ausencia de ventajas comparantivas frente a países de menor grado de desarrollo., The aim of the paper is to advance the knowledge of Spain‟s participation in international production networks using data on trade in parts and components from 1990 to 2007. We have estimated the factors that influence trade in parts and components using an extended gravity panel data model. In addition to the standard variables in gravity models, we examine the role of differences in comparative advantages between Spain and its trading partners and the role of service link costs in parts and components trade. Our results show that the Spain‟s integration in production networking responds to variable related to the comparative advantage that Spain has in comparison with its trading countries; moreover, the creation of the EU has crucially stimulated Spanish trade in parts and components. Other factors such as geographic proximity and availability of mediumhigh quality transport and telecommunications infrastructures have boosted Spanish participation in European production-sharing networks, compensating for the lack of location advantages related to lower development countries.