[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ltv/dpaper/201402.html
   My bibliography  Save this paper

Assessing the Extent of EU-Russia Trade Integration in the Presence of Global Value Chains

Author

Listed:
  • Konstantins Benkovskis

    (Bank of Latvia)

  • Julija Pastusenko

    (Bank of Latvia)

  • Julia Woerz
Abstract
The present paper analyses trade linkages between EU Member States and Russia taking into account the indirect trade links through global value chains based on data for 2011 from the World Input-Output Database combined with gross flows between Russia and individual EU countries. We base our conclusions on three indicators: gross exports in final use, value added in final use and value added in output. The latter two novel indicators are able to capture direct and indirect links jointly by allocating the full amount of Russia's value added in the EU's final domestic use and output (and vice versa: the EU's value added in Russia's final domestic use and output). In terms of direct export shares, Russia represents the EU's fourth largest trade partner, while the EU is Russia's largest trade partner. The Russian economy is also considerably more dependent on European value added in terms of both final use and producing output than vice versa. However, the degree of integration varies greatly across the EU Member States. For example, the Baltic States are notably more dependent on Russia's value added than vice versa. Moreover, certain economic sectors in the EU are strongly dependent on Russian inputs, such as the energy sector, utilities and air transport.

Suggested Citation

  • Konstantins Benkovskis & Julija Pastusenko & Julia Woerz, 2014. "Assessing the Extent of EU-Russia Trade Integration in the Presence of Global Value Chains," Discussion Papers 2014/02, Latvijas Banka.
    • Handle: RePEc:ltv:dpaper:201402
    as

    Download full text from publisher

    File URL: https://www.bank.lv/images/stories/pielikumi/publikacijas/petijumi/EN_DM2-Benkovskis-Pastusenko-Woerz.pdf
    Download Restriction: no
    File URL: https://www.macroeconomics.lv/sites/default/files/dp-2-2014_benkovskis_pastusenko_worz.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    trade integration; global value chains; Russia; European Union;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ltv:dpaper:201402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Konstantins Benkovskis (email available below). General contact details of provider: https://edirc.repec.org/data/bolgvlv.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.