Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-23T15:45:47.313Z Has data issue: false hasContentIssue false
  • English
  • Français

VALUE CHAINS AND DOMESTIC COMPETITIVENESS

Published online by Cambridge University Press:  28 April 2020

Michael Gasiorek ,
Alasdair Smith  and
Nicolo Tamberi
Michael Gasiorek
Affiliation:
University of Sussex, UKTPO. E-mails: m.gasiorek@sussex.ac.uk; Alasdair.Smith@sussex.ac.uk; N.Tamberi@sussex.ac.uk.
Alasdair Smith
Affiliation:
University of Sussex, UKTPO. E-mails: m.gasiorek@sussex.ac.uk; Alasdair.Smith@sussex.ac.uk; N.Tamberi@sussex.ac.uk.
Nicolo Tamberi
Affiliation:
University of Sussex, UKTPO. E-mails: m.gasiorek@sussex.ac.uk; Alasdair.Smith@sussex.ac.uk; N.Tamberi@sussex.ac.uk.
Get access Rights & Permissions [Opens in a new window]

Abstract

With international trade increasingly undertaken within vertically fragmented supply chains, this paper considers the impact of changes in trade costs on domestic output. In the context of the UK’s exit from the EU we show that the negative impact on UK output will depend on changes in both domestic and export competitiveness. Since for many firms the majority of their sales are to the domestic market, the domestic competitiveness impact may be quantitatively more important. The impact on output will be more significant the greater the integration of firms in international supply chains, and the greater the asymmetric impact of leaving the EU on UK firms relative to EU firms.

Keywords

Economic impacts of globalisationEmpirical studies of tradeEconomic integrationTrade forecasting and simulationInternational policy coordination and transmission.F6F14F15F17F42.
Type
Research Article
Information
National Institute Economic Review , Volume 252 , May 2020 , pp. R45 - R51
Copyright
© National Institute of Economic and Social Research, 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors are grateful for helpful comments and discussions from UKTPO Fellows and notably from L. Alan Winters, and Julia Magntorn-Garrett. Any errors and omissions remain the fault of the authors. All three authors are based at the University of Sussex and affiliated with the UK Trade Policy Observatory (UKTPO), and the Department of Economics.

References

REFERENCES

Baldwin, R. and Lopez-Gonzalez, J. (2015), ‘Supply-chain trade: a portrait of global patterns and several testable hypotheses’, The World Economy, 38, 11, pp. 1682–721.Google Scholar
Cadot, O. and Gourdon, J. (2016), ‘Non-tariff measures, preferential trade agreements, and prices: new evidence’, Review of World Economics (Weltwirtschaftliches Archiv), 152(2), pp. 22–249.Google Scholar
Corden, W.M. (1966), ‘The structure of a tariff system and the effective protective rate’, Journal of Political Economy, 74.3, pp. 221–37.Google Scholar
Criscuolo, C. and Timmis, J. (2018), ‘The changing structure of GVCs: are hubs key for performance?’, OECD Productivity working papers, no. 14, June.Google Scholar
Di Mauro, F. and Forster, K. (2008), Globalisation and the Competitiveness of the Euro Area, ECB Occasional Paper No. 97.Google Scholar
Dixit, A.K. and Stiglitz, J.E. (1977), ‘Monopolistic competition and optimum product diversity’, American Economic Review, 67(3), pp. 297–308.Google Scholar
Ethier, W.J. (1979), ‘Internationally decreasing costs and world trade’, Journal of International Economics, 9(1), pp. 1–24.Google Scholar
Ethier, W.J. (1982), ‘National and international returns to scale in the theory of international trade’, American Economic Review, 72(3), pp. 389–405.Google Scholar
Gasiorek, M., Magntorn-Garrett, J., Tamberi, N. and Winters, L.A.W. (2020), Recommendations on the UK Government’s Global Tariff Proposals, UKTPO Briefing Paper no. 39.Google Scholar
Gasiorek, M., Serwicka, I. and Smith, M.A.M. (2018), ‘Which manufacturing industries and sectors are most vulnerable to Brexit?’, World Economy.Google Scholar
Kowalski, P.et al. (2015), Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-related Policies, OECD Trade Policy Papers, No. 179, Paris: OECD Publishing.Google Scholar
Marin, D. (2010), ‘Germany's super competitiveness: a helping hand from Eastern Europe’, VOX, 20 June.Google Scholar
Timmer, M., Los, B., Stehrer, R. and de Vries, G.J. (2013), ‘Fragmentation, incomes and jobs: an analysis of European competitiveness’, Economic Policy, 28, 76, pp. 613–61.Google Scholar
Yi, K-M. (2003), ‘Can vertical specialisation explain the growth of world trade’, Journal of Political Economy, pp. 51–102. WIOD database, http://www.wiod.org.Google Scholar