Master
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English

Productive Capabilities in the European North-South divide: A structural view of trade patterns in Germany, Italy and Spain between 1995 and 2018

Number of pages59
Master program titleMaster in Political Economy of Capitalism
Defense date2023-06-12
Abstract

Following the Great Recession, there has been growing interest in the study of macroeconomic divergence in the Eurozone. Recent academic research has shown that Monetary Union is not a sufficient condition to achieve economic convergence, since the coexistence of blocs of countries with significant asymmetries persists. In this thesis we deepen the analysis of macroeconomic divergence in the Eurozone by assessing the structure of trade in three European countries (Germany, Italy and Spain) between 1995 and 2018. Using trade data, we compare the evolution of sophistication in these countries. Drawing on Core-Periphery analysis and the notion of productive capabilities, we use different empirical tools to assess the structure of trade, which point to a differentiation of the studied countries. While Germany maintains a dominant position in exports of high-tech goods, Italy and Spain are increasingly specializing in medium- and low-tech goods, respectively. These results show the role of path dependence in the long-term dynamics of countries, and the difficulty of reorienting development without coordinated policy efforts at the regional level. Evolutionary economics and structuralism, together with the analysis of complexity economics, allow for a comprehensive analysis of development. Europe needs to go beyond market-based solutions to level the playing field among its members.

Keywords
  • Macroeconomic divergence
  • Eurozone
  • Complexity
  • Productive Capabilities
  • Core- Periphery
  • Trade
  • Structuralism
Citation (ISO format)
FERNANDEZ LANDA, Yaku Fernando. Productive Capabilities in the European North-South divide: A structural view of trade patterns in Germany, Italy and Spain between 1995 and 2018. Master, 2023.
Main files (1)
Master thesis
accessLevelPublic
Identifiers
  • PID : unige:170457
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Creation25/07/2023 15:57:08
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