Competitiveness at the country-sector level : new measures based on global value chains

Beißinger, Thomas; Marczak, Martyna

Competitiveness at the country-sector level : new measures based on global value chains

dc.contributor.author	Beißinger, Thomas	de
dc.contributor.author	Marczak, Martyna	de
dc.date.accessioned	2024-04-08T08:55:50Z
dc.date.available	2024-04-08T08:55:50Z
dc.date.created	2018-05-08
dc.date.issued	2018
dc.description.abstract	We propose the so-called domestic “embodied unit labor costs” (EULC) at the country-sector level as a new cost-related basis for measures of international competitiveness. EULC take into account that a sector’s labor costs constitute only a small share of its total cost which to a large extent consist of expenses for inter- mediate goods from other sectors. In line with a simple Leontief-type model, the proposed measure is constructed as a weighted average of unit labor costs of all do- mestic sectors contributing to the final goods of a specific sector. The contribution is expressed in value-added terms and takes global supply chains into account. We also show how EULC can be consistently calculated for sectoral aggregates such as the tradable goods sector. Based on EULC we propose the “embodied real effec- tive exchange rate” (EREER) at the country-sector level as a new competitiveness indicator where the relevance of trading partners is quantified by an appropriate value-added measure. The chosen value-added concept replaces gross exports tra- ditionally used as the weight basis in effective exchange rates. Using the World Input-Output Database (WIOD) we employ the proposed indicators to shed new light on changes in cost competitiveness at the sectoral level for Germany, and compare the empirical evidence with selected other euro area countries.	en
dc.identifier.swb	504244906
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/6271
dc.identifier.urn	urn:nbn:de:bsz:100-opus-14881
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheim discussion papers in business, economics and social sciences; 2018,12
dc.rights.license	publ-mit-pod	en
dc.rights.license	publ-mit-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subject	Unit labor costs	en
dc.subject	Real effective exchange rate	en
dc.subject	Global supply chains	en
dc.subject	Input-output analysis	en
dc.subject	Sectoral analysis	en
dc.subject	WIOD	en
dc.subject.ddc	330
dc.subject.gnd	Lohnstückkosten	de
dc.subject.gnd	Supply Chain Management	de
dc.subject.gnd	Wettbewerbsverhalten	de
dc.title	Competitiveness at the country-sector level : new measures based on global value chains	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520	de
local.opus.number	1488
local.series.issueNumber	2018,12
local.series.title	Hohenheim discussion papers in business, economics and social sciences
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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