Factory Europe and its Ties in Global Value Chains

Cross country Value Chains play a vital role for labor growth throughout the European Union

Factory Europe

Global value chains have continued to expand over the last few decades. This has made them a central part of many companies’ internationalization strategies and an important facet of globalization.

However, catchwords such as offshoring, bazaar economy and relocation of production have also caused this trend to become a focus of globalization critics. Above all in the United States under the new government, but also in France and other parts of Europe, this skepticism is playing an important role. However, partnerships on the production side offer great opportunities to take advantage of the international division of labor. This applies not only to the inner-European ties in the EU Single Market. Intermediate consumption networks between Germany and the United Kingdom (UK) are also very close and placed at risk due to the Brexit. Something similar applies to the transatlantic ties on the production side. A protectionist backlash against globalization and offshoring would therefore threaten an important source of prosperity in regard to European and global value chains.

This study takes a detailed look at the number of jobs based on cross country production networks that may be at stake because of recent protectionist tendencies.

Studie des Institutes der deutschen Wirtschaft und der IW Consult GmbH im Auftrag Bertelsmann Stiftung

Manuel Fritsch / Jürgen Matthes – Factory Europe: Download | PDF