Premium
Spillover effects of Germany's final demand on Southern Europe
Author(s) -
Picek Oliver,
Schröder Enno
Publication year - 2018
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12635
Subject(s) - spillover effect , economics , order (exchange) , balance (ability) , international economics , macroeconomics , econometrics , finance , medicine , physical medicine and rehabilitation
We use data from the World Input‐Output Database to fit a closed multiregional input–output model in order to estimate the size of spillover effects of Germany's final demand on GDP , employment and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.