Europeanization vs. Globalization? A deeper look into income and employment embodied in intra-European trade

Production processes are nowadays increasingly global, implying interdependent structures linking goods, processes and countries. Traditional economic blocks and sectoral intra-country linkages coexist with increasing worldwide dependencies. Recent literature supports the hypothesis of a new globalization process taking place in the late 1990s and the 21st century, centred on the consolidation of increasingly competitive macro-regions at a global level, with a growing specialization of countries within them. We propose a multiregional input-output (MRIO) model of the European Union (EU) to analyse whether the generation of employment and income in Europe in recent decades can be defined as a process that is mainly regional or global (involving countries within the region versus countries outside Europe). Our results show that intra-EU trade is an important factor contributing to income and employment growth, more oriented to intermediate inputs, in the same way as extra-EU trade, despite the fact that some European countries are more specialized in final goods, mainly driven by high-income EU countries. Los procesos de producción son hoy en día cada vez más globales, lo que implica estructuras interdependientes que vinculan bienes, procesos y países. Los bloques económicos tradicionales y los vínculos sectoriales dentro del país coexisten con dependencias mundiales crecientes. La literatura reciente respalda la hipótesis de un nuevo proceso de globalización que tuvo lugar a fines de los años 90 y el siglo XXI, centrado en la consolidación de macro-regiones cada vez más competitivas a nivel global, con una creciente especialización de los países dentro de ellas. Proponemos un modelo multirregional input-output (MRIO) de la Unión Europea (UE) para analizar si la generación de empleo e ingresos en Europa en las últimas décadas se puede definir como un proceso que es principalmente regional o global. Nuestros resultados muestran que el comercio intracomunitario es un factor importante que contribuye al crecimiento de los ingresos y el empleo, más orientado a los inputs intermedios, de la misma manera que el comercio extracomunitario, a pesar del hecho de que algunos países europeos están más especializados en productos finales, principalmente demandados por países de altos ingresos de la UE

Testing assumptions made in the construction of input-output tables

Product input–output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input–output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables

The problem of negatives generated by the commodity technology model in input–output analysis: A review of the solutions

Many economic models (e.g., computable general equilibrium models, econometric input–output models) revolve around a matrix of technical coefficients. However, these matrices can be estimated only once every 5 years as long as they are calculated from input–output tables and these are only published on a 5-year basis. Alternatively, use and make (or supply) tables are being regularly published on a yearly basis. However, they need to be converted into input–output tables as a previous step to form the matrix of technical coefficients. In doing so, this paper aims to shed light on the construction process of input–output tables and to guide economic modelers in making a decision on the way to make such conversion and how to deal with the subsequent problems, particularly with negative technical coefficients

Testing assumptions made in the construction of input-output tables

Product input–output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input–output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables.JRC.J.5-Sustainable Production and Consumptio