Spillover Effects of Germany's Final Demand on Southern Europe

27 Pages Posted: 17 Sep 2018

See all articles by Oliver Picek

Oliver Picek

Vienna University of Economics and Business - Department of Economics

Enno Schröder

Delft University of Technology - Faculty of Technology, Policy and Management

Date Written: August 2018

Abstract

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.

Keywords: adjustment, effects, euro area, external, global value chains, input–output analysis, macroeconomic imbalances, spillover

Suggested Citation

Picek, Oliver and Schröder, Enno, Spillover Effects of Germany's Final Demand on Southern Europe (August 2018). The World Economy, Vol. 41, Issue 8, pp. 2216-2242, 2018, Available at SSRN: https://ssrn.com/abstract=3247841 or http://dx.doi.org/10.1111/twec.12635

Oliver Picek (Contact Author)

Vienna University of Economics and Business - Department of Economics

Augasse 2-6
A-1090 Wien
Austria

Enno Schröder

Delft University of Technology - Faculty of Technology, Policy and Management ( email )

Jaffalaan 5
Delft, 2628BX
Netherlands

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