The Development of EU and EU Member States' External Competitiveness (original) (raw)
We revisit EU competitveness scores using post-crisis data. While EU market share were at their 2000 level in 2007, they deteriorated afterwards, even for high-end and high-tech products. EU exports still embody 85% of value added created in the EU, despite increasing fragmentation of value chains. Therefore European exports are still predominently "Made in Europe". EU manufacturing exports increasingly include value added in services. Competitveness in services is an important determinant of future European industry. This working paper is based on a research commissioned by the Commission of the European Communities (specifi c contract n° SI2.630108). The views expressed herein are those of the authors, and do not represent any offi cial view of the Commission. The paper is complemented by an online appendix replicating the results of the paper taking account of intra-EU trade (not included in the main text), and providing results (with and without intra-EU trade) for individual Member States.
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