Working Paper
The Structure of Europe:
International Input-Output Analysis with Trade in
Intermediate Inputs and Capital Flows
Sebastian Benz, Mario Larch, Markus Zimmer
Ifo Institute, Munich, 2013
Ifo Working Paper No. 161
Ifo Institute, Munich, 2013
Ifo Working Paper No. 161
In this paper we theoretically derive an international Rybczynski 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 the European Union. 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.
Schlagwörter: Rybczynski effects, input-output analysis, European Union, intermediate, inputs.
JEL Klassifikation: F110, F150, O300, O520