The Structure of Europe: International Input–Output Analysis with Trade in Intermediate Inputs and Capital Flows

14 Pages Posted: 26 Jul 2014

See all articles by Sebastian Benz

Sebastian Benz

Organization for Economic Co-Operation and Development (OECD)

Mario Larch

University of Bayreuth - Faculty of Law, Business and Economics; University of Bayreuth; CESifo; Ifo Institute for Economic Research; GEP at the University of Nottingham; Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Markus Zimmer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: August 2014

Abstract

In this paper we theoretically derive an international Rybczynski matrix. Its elements indicate the aggregate output change in a country when endowment with one or more factors in the same or another country is increased. This allows us to characterize the production structure in 11 countries of the European Union. Starting from a baseline case with free trade in final goods only, we analyze two types of interaction between countries: international trade of intermediate inputs and internationally mobile capital.

Suggested Citation

Benz, Sebastian and Larch, Mario and Zimmer, Markus, The Structure of Europe: International Input–Output Analysis with Trade in Intermediate Inputs and Capital Flows (August 2014). Review of Development Economics, Vol. 18, Issue 3, pp. 461-474, 2014, Available at SSRN: https://ssrn.com/abstract=2472250 or http://dx.doi.org/10.1111/rode.12096

Sebastian Benz (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

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Mario Larch

University of Bayreuth - Faculty of Law, Business and Economics ( email )

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University of Bayreuth ( email )

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CESifo ( email )

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Ifo Institute for Economic Research ( email )

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GEP at the University of Nottingham ( email )

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Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

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Markus Zimmer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Poschinger Str. 5
Munich, 01069
Germany

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