Supply‐Chain Trade and Labor Market Outcomes: The Case of the 2004 European Union Enlargement

26 Pages Posted: 13 Apr 2018

See all articles by Lennart C. Kaplan

Lennart C. Kaplan

University of Goettingen (Gottingen)

Tristan Kohl

University of Groningen - Faculty of Economics and Business

Inmaculada Martínez‐Zarzoso

Jaume I University; University of Goettingen (Gottingen)

Date Written: May 2018

Abstract

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.

Suggested Citation

Kaplan, Lennart C. and Kohl, Tristan and Martínez‐Zarzoso, Inmaculada, Supply‐Chain Trade and Labor Market Outcomes: The Case of the 2004 European Union Enlargement (May 2018). Review of International Economics, Vol. 26, Issue 2, pp. 481-506, 2018, Available at SSRN: https://ssrn.com/abstract=3159642 or http://dx.doi.org/10.1111/roie.12339

Lennart C. Kaplan (Contact Author)

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Tristan Kohl

University of Groningen - Faculty of Economics and Business ( email )

P.O. Box 800
Groningen, Groningen 9700 AV
Netherlands

HOME PAGE: http://www.tristankohl.org

Inmaculada Martínez‐Zarzoso

Jaume I University

Av. de Vicent Sos Baynat, s/n
Castellón, Castellón de la Plana 12071
Spain

University of Goettingen (Gottingen)

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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