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Łukasz Ambroziak National Research Institute and Assistant Professor in the Institute for Market, Consumption and Business Cycles Research (IBRKK) – National Research Institute, Warsaw, Poland

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This paper aims to present the role of Germany in the global value chains (GVCs) of 10 Central and Eastern European countries (CEECs) in 1995–2011. GVCs, being a result of the fragmentation of production processes, have changed the nature of economic globalisation. The study covers five Central European countries (CECs) (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the three Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania. Germany is chosen because it is the main trading partner of the majority of the CEECs. The illustration of the position of Germany in GVCs of the CEECs is based on trade statistics in value added terms. The research results show that Germany has become an engine of increasing integration of the CECs in the GVCs. The role of Germany as a supplier of inputs to the CECs’ exports (backward linkages) is larger than its role as an exporter of value added originating from the CECs (forward linkages).

  • Ambroziak, Ł. (2012a): FDI and Intra-Industry Trade: Theory and Empirical Evidence from the Visegrad Countries. International Journal of Economics and Business Research, 4(1-2): 180198.

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  • Ambroziak, Ł. (2012b): The Impact of the Economic Crisis on an Intra-Industry Trade in the Automotive Industry in the European Union. In: Cerović, B. et al. (eds): From Global Crisis to Economic Growth. Which Way to Take? Belgrade: University of Belgrade, Faculty of Economics, pp. 195220.

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  • Ambroziak, Ł. (2017): Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content. Entrepreneurial Business and Economics Review, 5(2): 5169.

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  • Baldwin, R.Robert-Nicoud, F. (2014): Trade-In-Goods and Trade-In-Tasks: An Integrating Framework. Journal of International Economics, 92(1): 5162.

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  • Cieślik, E.Biegańska, J.Środa-Murawska, S. (2016): The Intensification of Foreign Trade in Post-Socialist Countries and Their Role in Global Value Chains. Acta Oeconomica, 66(3): 465487.

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  • Éltető, A.Magasházi, A.Túry, G. (2015): Global Value Chains and Upgrading: The Experience of Hungarian Firms in the Heavy Engineering and Automotive Industries. In: Vlčková, J. (ed.): How to Benefit from Global Value Chains: Implications for the V4 countries. Praha: Nakladatelství Oeconomica VŠE, pp. 6797.

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  • Ferrantino, M. J.Taglioni, D. (2014): Global Value Chains in the Current Trade Slowdown. Economic Premise, No. 137. The World Bank.

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  • Folfas, P. (2016): Światowy i polski handel brutto oraz handel wartością dodaną - analiza porównawcza (The world and Poland’s gross trade and value added trade – comparative analysis). International Business and Global Economy, 35(1): 3243.

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  • Foster-McGregor, N.Stehrer, R. (2013): Value Added Content of Trade: A Comprehensive Approach. Economics Letters, 120(2): 354357.

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  • Gereffi, G.Fernandez-Stark, K. (2011): Global Value Chain Analysis: A Primer. Durham, N.C. U.S.A.: Center on Globalization, Governance & Competitiveness, Duke University.

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  • Gereffi, G.Luo, X. (2015): Risks and Opportunities of Participation in Global Value Chains. Journal of Banking and Financial Economics, 2(4): 5163.

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  • Grodzicki, M. J. (2014): Global Value Chain and Competitiveness of V4 Economies. In: Kiendl-Wendner, D.Wach, K. (eds): International Competitiveness in Visegrad Countries: Macro and Micro Perspectives. Graz: Fachhochschule Joanneum, pp. 1331.

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  • Hagemejer, J.Ghodsi, M. (2017): Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States. Central European Economic Journal, 1 118.

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  • Havlik, P. (2014): Patterns of Structural Change in the New EU Member States. WIIW Research Paper, No. 394, Vienna.

  • IMF (2013): German-Central European Supply Chain-Cluster Report. IMF Country Report, No. 263.

  • Johnson, R. C.Noguera, G. (2012): Accounting for Intermediates: Production Sharing and Trade in Value-Added. Journal of International Economics, 86(2): 224236.

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  • Kaliszuk, E. (2016): Chinese and South Korean Investment in Poland: A Comparative Study. Transnational Corporations Review, 8(1): 6078.

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  • Kawecka-Wyrzykowska, E.Ambroziak, Ł.Molendowski, E.Polan, W. (2017): Intra-Industry Trade of the New EU Member States: Theory and Empirical Evidence. Warszawa: PWN.

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  • Koopman, R.Powers, W.Wang, Z.Wei, S-J. (2010): Give Credit to Where Credit is Due: Tracing Value Added in Global Production Chains. NBER Working Papers Series, No. 16426.

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  • Koopman, R.Wang, Z.Wei, S-J . (2014): Tracing Value-Added and Double Counting in Gross Exports. American Economic Review, 104(2): 459494.

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  • Krzywdzinski, M. (2008): Work Models Under Strain of Offshoring. East-West Competition in the European Car Industry. Paper presented at the GERPISA International Colloquium, June 18–20, 2008, Turin.

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  • Miškinis, A.Reinbold, B. (2010): Investments of German MNEs into Production Networks in Central European and Baltic States. Ukio Technologinis ir Ekonominis Vystymas, 16(4): 717735.

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  • Nagengast, A.Stehrer, R. (2016): Accounting for the Differences between Gross and Value Added Trade Balances. The World Economy, 39(9): 12761306.

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  • Nagengast, A. J.Stehrer, R. (2014): Collateral Imbalances in Intra-European Trade? Accounting for the Differences between Gross and Value Added Trade Balances. ECB Working Paper Series, No. 1695.

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  • OECD (2013): Interconnected Economies: Benefiting from Global Value Chains. OECD Publishing.

  • Olczyk, M.Kordalska, A. (2017): Gross Exports versus Value-Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries. Eastern European Economics, 55(1): 91109.

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  • Pavlínek, P.Domanski, B.Guzik, R. (2009): Industrial Upgrading through Foreign Direct Investment in Central European Automotive Manufacturing. European Urban and Regional Studies, 16(1): 4363.

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  • Soós, K. A. (2015): Geographical and Sectorial Concentration in Czech, Hungarian and Slovak Exports. Budapest, Economic and Regional Studies of the Hungarian Academy of Sciences, Institute of Economics, Discussion Papers, MT-DP No. 2015/48.

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  • Stehrer, R. (2012): Trade in Value Added and the Value Added in Trade. WIIW Working Paper, No. 81, Vienna.

  • Stehrer, R. (2013): Accounting Relations in Bilateral Value Added Trade. WIIW Working Papers, No. 101, Vienna.

  • Stehrer, R.Foster, N.de Vries, G. (2012): Value Added and Factors in Trade: A Comprehensive Approach. WIIW Working Paper, No. 80, Vienna.

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  • Stehrer, R.Stöllinger, R. (2013): Positioning Austria in the Global Economy: Value Added Trade, International Production Sharing and Global Linkages. Research Centre International Economics FIW–Research Reports, No. 02. Austria.

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  • Timmer, M. P.Dietzenbacher, E.Los, B.Stehrer, R.de Vries, G. J. (2015): An Illustrated User Guide to the World Input-Output Database: The Case of Global Automotive Production. Review of International Economics, 23:575605.

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  • Timmer, M. P.Los, B.Stehrer, R.de Vries, G. (2013): Fragmentation, Incomes and Jobs: An Analysis of European Competitiveness. Economic Policy, 28(76): 613661.

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  • Túry, G. (2014): Automotive Industry in the EU10 Economies: Developments in the Past Decade. In: Éltető, A. (ed.): Mind the Gap, Integration Experiences of the Ten Central and Eastern European Countries. Budapest: Centre for Economic and Regional Studies of the Hungarian Academy of Sciences, Institute of World Economics, pp. 83105.

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  • Túry, G. (2016): Global Appreciation of the Central European Region along the Enterprise Value Chain – The Case Study of the Volkswagen Group. Paper presented at the conference “The Future of Europe – Central and Eastern Europe in a Comparative Perspective”. November 17–18, 2016, Warsaw.

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  • UNCTAD (2013): Global Value Chains and Development. Investment and Value Added Trade in Global Economy. Preliminary version, Geneva: UNCTAD.

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  • Vlčková, J. (2015): Measuring GVCs and Policy Implications. In: Vlčková, J. (ed.): How to Benefit from Global Value Chains: Implications for the V4 countries. Praha: Nakladatelství Oeconomica VŠE, pp. 737.

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  • Vlčková, J.De Castro, T.Antal, J. (2015): Upgrading in the Global Value Chains: The Case of the Czech Republic. In: Vlčková, J. (ed.): How to Benefit from Global Value Chains: Implications for the V4 Countries. Praha: Nakladatelství Oeconomica VŠE, pp. 3866.

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Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Kálmán

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • David Kemme, University of Memphis, USA
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

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Acta Oeconomica
Language English
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1966
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Founder Magyar Tudományos Akadémia
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ISSN 0001-6373 (Print)
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