23 March 2016 ECONOMIC BULLETIN
Articles Transmission of output shocks – the role of cross-border production chains
Articles Transmission of output shocks – the role of cross-border production chains
See Full Report HERE Transmission of output shocks – the role of cross-border production chains
Globalisation has led to a rapid increase in euro area trade and facilitated the build-up of global production chains. Although these developments boost welfare as they increase the international division of labour (which drives growth and productivity), they also pose some challenges.
Depending on the position of the euro area and its trading partners in these chains, economic disturbances from other parts of the world can be transmitted to the euro area in a more complex manner than traditional trade statistics can capture.