This paper uses a global input-output framework to quantify U.S. and EU demand spillovers and the elasticity of world trade to GDP during the global recession of 2008-2009. Cross-border intermediate goods linkages have implications for the transmission of shocks and the relationship between demand, trade, and production across countries. We find that 20-30 % of the decline in U.S. and EU final demand was borne by foreign countries, with NAFTA

The growing internationalisation of the world economy in recent decades has placed firms under strong competitive pressures, but has also handed them new opportunities to improve their productivity by exploiting, for example, the cost advantages and technological progress available to those which import intermediate goods and services for use in their

In 2011 all ECB publications feature a motif taken from the €100 banknote. NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. This paper can be downloaded without charge from

Policy interest in export diversification is not new but, for over two decades, it was mired in an ideologically loaded debate about the role of the State. Old-time industrial policy having died of its own excesses, the debate over what, if anything, the gov-ernment should do to promote export growth was contained within the fringe of the

This paper explores perceived gaps between corporate needs and the availability of skills and attributes among the talent pool of the Malaysian services sector. In Phase I of the study, 169 human resource managers from service companies were surveyed. They were asked to indicate (1) the importance of skills, competencies and characteristics for the service workforce, and (2) the ease of recruiting those with such work skills and talents. In Phase II, focus group sessions and interviews were conducted with 37 Malaysian managers, yielding a qualitative summary of industry needs and talent pool shortages. Findings indicated a gap between industry needs and the availability of important competencies within the pool of prospective workers. Individuals with competencies in communication, information technology and customer relationship management, and those with high motivation and career commitment were most sought by service industry employers.

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fragmentation

Given the rising importance of global production networks, this paper examines the link between a country’s extent of production sharing and a country’s export development. Using the OECD’s international input-output database on intermediate goods imports, the empirical analysis is applied to China, where international production sharing is particularly pronounced. Our findings indicate that China’s involvement in vertical production networks exerts a positive effect on China’s manufacturing exports. An important policy implication, particularly relevant for developing economies, is that a policy promoting a more extensive involvement in global production sharing may significantly improve an economy’s export performance.

This paper explores the theory of optimal currency basket in a small open economy general equilibrium model with sticky prices. In contrast to existing literature, we focus on an economy with vertical trade, where the currencies in the basket may play different roles in invoicing trade flow. In a simple two-currency basket, one currency is used to invoice imported intermediate goods and is called “import currency”, while the other currency is used to invoice exported finished goods and is called “export currency”. We find that the optimal weights of the import currency and the export currency depends critically on the structure of vertical trade. Moreover, if a country decides to choose a single-currency peg, the choice of pegging currency also depends on how other competing economies respond to external exchange rate fluctuations.

The designations employed, descriptions and classifications of countries, and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. The responsibility for opinions expressed rests solely with the authors, and publication does not constitute an endorsement by UNIDO of the opinions expressed. Although great care has been taken to maintain the accuracy of information herein, neither UNIDO nor its member States assume any responsibility for consequences which may arise from the use of the material. This document may be freely quoted or reprinted but acknowledgement is requested. This document has been produced without formal editing. Terms such as “developed”, “industrialised ” and “developing ” are intended for statistical convenience and do not necessarily express a judgment. Any indication of, or reference to, a country, institution or other legal entity does not constitute an endorsement. This document represents work in progress and is intended to generate comment and discussion. Table of contents