The Impact of Global Value Chains on the Euro Area Economy

Abstract

The studies summarised in this paper focus on the economic implications of euro area firms’ participation in global value chains (GVCs). They show how, and to what extent, a large set of economic variables and interlinkages have been affected by international production sharing. The core conclusion is that GVC participation has major implications for the euro area economy. Consequently, there is a case for making adjustments to standard macroeconomic analysis and forecasting for the euro area, taking due account of data availability and constraints.

Keywords: international trade, global value chains, vertical specialisation, international interlinkages, euro area

JEL Classification: F6, F10, F14, F16, E3