An official website of the European Union How do you know?      
European Commission logo
JRC Publications Repository Menu

Reassessing the Decline of EU Manufacturing: A Global Value Chain Analysis

cover
The declining contribution of EU manufacturing to total GDP and the simultaneous fall of its share in global manufacturing have led to concerns about an overall loss of EU competitiveness, in particular vis-à-vis China. We analyse the empirical evidence underpinning these concerns by applying a newly developed decomposition technique to global input-output data spanning the years 2000 to 2014. In this, we consider both the sectoral and final demand (or value chain) definition of manufacturing. We find, first, that manufacturing’s lower share in EU total value added has generally been exaggerated due to the use of nominal measures, noting that higher-tech manufacturing actually grew in real terms. Second, the decomposition analysis reveals that lower economic growth in the EU relative to the world had the strongest negative impact on the contribution of its manufacturing sector, while shifts in demand patterns exerted a negative (positive) impact for activities with lower (higher) technological content. And third, the observed loss of market shares confirms a downturn of EU manufacturing competitiveness, especially in textiles and electronics, with pharmaceuticals as the only industry showing resilience under external competition.
2019-12-06
Publications Office of the European Union
JRC118905
978-92-76-11253-2 (online),   
1831-9424 (online),   
EUR 29999 EN,    OP KJ-NA-29999-EN-N (online),   
https://publications.jrc.ec.europa.eu/repository/handle/JRC118905,   
10.2760/30611 (online),   
Language Citation
NameCountryCityType
Datasets
IDTitlePublic URL
Dataset collections
IDAcronymTitlePublic URL
Scripts / source codes
DescriptionPublic URL
Additional supporting files
File nameDescriptionFile type 
Show metadata record  Copy citation url to clipboard  Download BibTeX
Items published in the JRC Publications Repository are protected by copyright, with all rights reserved, unless otherwise indicated. Additional information: https://ec.europa.eu/info/legal-notice_en#copyright-notice