UMIĘDZYNARODOWIENIE PRODUKCJI A RZECZYWISTA PRZEWAGA KOMPARATYWNA KRAJÓW UNII EUROPEJSKIEJ W ŚWIATOWYM HANDLU TOWAROWYM
INTERNATIONALIZATION OF PRODUCTION AND REAL COMPARATIVE ADVANTAGE OF EUROPEAN UNION COUNTRIES IN WORLD MERCHANDISE TRADE

Summary/Abstract: This paper analyses the impact of international fragmentation of production on comparative advantage of European Union countries in international trade. Fragmentation is measured by new method based on the concept value-added trade by decomposition of total value added trade into domestic value added and foreign value added content of export. The analysis used two main data sources: OECD-WTO Trade in Value Added Database (TIVA), and World Input-Output Database. Foreign value added affected EU Member States comparative advantage – its impact on various industries was adverse. In some cases it improved RCA indexes while in others using domestic value added for the calculations resulted in a larger comparative advantage.

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