<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This research focuses on the impact of German exports on exports of the other selected EU countries. We used the Global VAR approach to build a robust trade model between 23 EU countries, the USA, and China. By stressing this model with different shocks, we were able to observe how exports of the EU countries react to German loss of competitiveness and decline of demand from Germany. Based on our simulation, we could identify countries which <italic>i.</italic> are Germany’s competitors and would benefit from German loss of competitiveness, <italic>ii.</italic> are tied with German trade so tightly that loss of German competitiveness would negatively affect their exports.</p></abstract>

This research focuses on the impact of German exports on exports of the other selected EU countries. We used the Global VAR approach to build a robust trade model between 23 EU countries, the USA, and China. By stressing this model with different shocks, we were able to observe how exports of the EU countries react to German loss of competitiveness and decline of demand from Germany. Based on our simulation, we could identify countries which i. are Germany’s competitors and would benefit from German loss of competitiveness, ii. are tied with German trade so tightly that loss of German competitiveness would negatively affect their exports.

German Exports: Impact on the Selected EU Countries

Faculty of Business and Economics, Department of Finance

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"German Exports: Impact on the Selected EU Countries"}

This research focuses on the impact of German exports on exports of the other selected EU countries. We used the Global VAR approach to build a robust trade...

German Exports: Impact on the Selected EU Countries

Published Online: Mar 30, 2021

Page range: 41 - 55

Received: May 10, 2020

Accepted: Dec 21, 2020

DOI: https://doi.org/10.2478/revecp-2021-0003

Keywords
International trade, Global VAR, German exports, European Union

© 2021 Marek Juráček, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

German Exports: Impact on the Selected EU Countries

Published Online: Mar 30, 2021

Page range: 41 - 55

Received: May 10, 2020

Accepted: Dec 21, 2020

DOI: https://doi.org/10.2478/revecp-2021-0003

KeywordsInternational trade, Global VAR, German exports, European Union

© 2021 Marek Juráček, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
International trade, Global VAR, German exports, European Union