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2018•World EconomyOpen access

Spillover effects of Germany's final demand on Southern Europe

Oliver Picek, Enno Schröder

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Abstract

Abstract We use data from the World Input‐Output Database to fit a closed multiregional input–output model in order to estimate the size of spillover effects of Germany's final demand onGDP, employment and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.

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Abstract We use data from the World Input‐Output Database to fit a closed multiregional input–output model in order to estimate the size of spillover effects of Germany's final demand onGDP, employment and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.

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Available abstract

Abstract We use data from the World Input‐Output Database to fit a closed multiregional input–output model in order to estimate the size of spillover effects of Germany's final demand onGDP, employment and the trade balance in Southern European countries. We find that spillover effects are rather small. Germany alone will hardly make a significant contribution to the external adjustment process in the European South.

Key concepts: Spillover effect, Economics, Order (exchange), Balance (ability), International economics, Macroeconomics, Econometrics, Finance

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