The Structure ofEurope: International Input–Output Analysis with Trade in Intermediate Inputs and Capital Flows
In: Review of development economics: an essential resource for any development economist, Band 18, Heft 3, S. 461-474
ISSN: 1467-9361
AbstractIn this paper we theoretically derive an internationalRybczynski matrix. Its elements indicate the aggregate output change in a country when endowment with one or more factors in the same or another country is increased. This allows us to characterize the production structure in 11 countries of theEuropeanUnion. Starting from a baseline case with free trade in final goods only, we analyze two types of interaction between countries: international trade of intermediate inputs and internationally mobile capital.