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Supply‐chain trade and labor market outcomes: The case of the 2004 European Union enlargement
Author(s) -
Kaplan Lennart C.,
Kohl Tristan,
MartínezZarzoso Inmaculada
Publication year - 2018
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12339
Subject(s) - accession , european union , resizing , international economics , international trade , supply chain , economics , value (mathematics) , commercial policy , trade barrier , fragmentation (computing) , global value chain , production (economics) , economic integration , business , comparative advantage , macroeconomics , marketing , machine learning , computer science , operating system
The structure of international trade is increasingly characterized by fragmentation of production processes and trade policy. Yet, how trade policy affects supply‐chain trade is largely unexplored territory. This paper shows how the accession of 10 Central and Eastern European Countries (CEECs) to the European Union affected European supply‐chain trade. We find that accession primarily fostered CEECs’ integration in global value chains of other entrants. Smaller integration benefits stem for East–West trade in services for lower‐skill activities. These increases in value‐added exports translate into sizeable job creation.