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What drives the differences in domestic value added in exports between old and new E.U. member states?
- Source :
- Economic Research-Ekonomska Istrazivanja; Dec2018, Vol. 31 Issue 1, p645-663, 19p
- Publication Year :
- 2018
-
Abstract
- Domestic value added in exports has lately become a key measure of a country's global competitiveness. This paper analyses the potential drivers of the differences in domestically generated value added in exported goods between 'new' (CEE-10) and 'old' (EU-15) countries. The analysis focuses on the role played by intangible investments, human capital and foreign direct investment. By studying export performance at the industry level for the period 2000-2011, this paper finds that differences in the share of domestically generated value added depend on investments in intangible capital, in particular investments in research and development. CEE-10 countries suffer from a distinct lack of investments in intangible capital, which is currently only sufficient to enable their mere participation in global value chains. Further, inward F.D.I. causes a reduction in demand for domestic inputs for both groups of countries and hence lowers D.V.A. in exports, while CEE-10 countries are also found to be upgrading global value chains by undertaking outward F.D.I. [ABSTRACT FROM AUTHOR]
- Subjects :
- EXPORTS
GROSS domestic product
FOREIGN investments
MARKET value
Subjects
Details
- Language :
- English
- ISSN :
- 1331677X
- Volume :
- 31
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Economic Research-Ekonomska Istrazivanja
- Publication Type :
- Academic Journal
- Accession number :
- 134694524
- Full Text :
- https://doi.org/10.1080/1331677X.2018.1438910