Drivers and Obstacles to Competitiveness in the EU: The Role of Value Chains and the Single Market

Abstract

This report offers an extensive analysis of the effects of the EU Single Market. It sheds light on four interrelated aspects: It first reveals the asymmetric economic performance across member countries, which also mirrors structural differences. These differences in economic outcomes are next confronted with measures of the Single Market, economic institutions, changes in demand patterns, industrial turbulence and producer price developments. Next, the changes in value chains are tracked over time, and also put into a global perspective. Eventually, firm level evidence complements the findings. The results are highly relevant for economic policies at the member country and the EU level.

Keywords: Europe, EU, Single Market, integration, value chains, linkages, WIOD, tradable, nontradable, productivity, growth, productivity

JEL Classification: F02, F15, F41, F43, L25, O43, O47, C67,