The network effect of deglobalisation on European regions

Giammetti, Raffaele and Papi, Luca and Teobaldelli, Desiree and Ticchi, Davide (2021): The network effect of deglobalisation on European regions.

Abstract

This paper investigates the effects of a retreat from global economic integration on the European regional production network for the period 2000-2010. We find that production has become increasingly fragmented, although the degree of heterogeneity across regions is substantial. This heterogeneity is also present in the direct and indirect effects of three different deglobalisation scenarios that we simulate. Our results show that deglobalisation generates winners and losers. Specifically, two groups of regions emerge; regions that would benefit from a return to a less integrated world, and regions that would instead gain from a strengthening of the European production network.

• Item Type: MPRA Paper
• Language: English
• Keywords: Reshoring, Global Value Chains, production networks, input-output, regional fragmentation, supply chains interruption.
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis; F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; F - International Economics > F6 - Economic Impacts of Globalization > F62 - Macroeconomic Impacts; F - International Economics > F6 - Economic Impacts of Globalization > F66 - Labor

References

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