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Vertical Specialization in the EU and the Causality of Trade

Huber, Stephan ; Nguyen Thanh, Binh



Abstract

We use a novel classification scheme to identify three stages of production in the manufacturing sector: parts, components and final goods. In particular, we offer evidence on the revealed comparative advantage of the EU-27 countries concerning the three vertically separated stages of production. Moreover, we investigate whether, and if so how, imports of parts, and components can work as a ...

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