This paper analyses intra- and extra-euro area (EA) trade flows for the five largest EA countries in order to gauge the importance of value chains. We bridge findings from input-output table analysis with a time series approach. Evidence of value chains is found for all trade patterns and is most pronounced within the EA. Imports from EA and RoW are not only domestically absorbed, but also re-exported. Exports to EA depend on demand in both the importing country and the rest of the world (RoW), indicating the importance of re-exports to RoW. Demand factors play a large role in all trade patterns.
Keywords: global value chains, euro area, trade patterns.
JEL Classifications: F14, F45.
Working paper no. 672