1. Home
  2. Studies
  3. The Network of Production and Supply Links between British Industries, the EU and Germany
Berthold Busch IW-Trends 25. July 2017 The Network of Production and Supply Links between British Industries, the EU and Germany

If the British government has its way, when the United Kingdom (UK) withdraws from the European Union (EU), it will also leave the internal market and the customs union. This means that trade between the two economic areas will in future be hobbled by non-tariff trade barriers and, if the worst comes to the worst, by actual tariffs. This may not only mean additional costs for the ultimate consumers, but also affect those companies in the UK and the EU which are linked by value chains.

Download PDF
The Network of Production and Supply Links between British Industries, the EU and Germany
Berthold Busch IW-Trends 25. July 2017

The Network of Production and Supply Links between British Industries, the EU and Germany

IW-Report

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

If the British government has its way, when the United Kingdom (UK) withdraws from the European Union (EU), it will also leave the internal market and the customs union. This means that trade between the two economic areas will in future be hobbled by non-tariff trade barriers and, if the worst comes to the worst, by actual tariffs. This may not only mean additional costs for the ultimate consumers, but also affect those companies in the UK and the EU which are linked by value chains.

In order to find out which industries will be particularly affected, this study examines data from the World Input-Output Database (WIOD) on the exchange of inputs between 56 industries in the UK and the EU on the one hand, and between the United Kingdom and Germany on the other. The majority of inputs exported from the UK to the EU are provided by service industries. In the other direction, the picture looks very different. Eight of the ten EU industries with the largest volume of intermediate products and services exported to the UK are in manufacturing. The inverse coefficients for the exchange of inputs between Germany and the UK are calculated for each sector. This shows how dense the network of links between these industries is. The value regarding German inputs sourced from Britain is the highest for other transport equipment, followed by coke and refined petroleum products and the basic metal industry. In terms of British inputs sourced from Germany, the inverse coefficients suggest that the industries most affected are automotive and chemicals.

Download PDF
The Network of Production and Supply Links between British Industries, the EU and Germany
Berthold Busch IW-Trends 25. July 2017

Berthold Busch: The network of production and supply links between British industries, the EU and Germany

IW-Report

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
The Costs and Benefits of Continuing Further Training
Susanne Seyda / Beate Placke IW-Trends No. 4 4. December 2017

The 9th IW Survey of Further Training

In 2016 some 85 per cent of companies in Germany were active in continuing vocational training, using a broad mix of methods.

IW

Read the article
IW Research Group Macroeconomic Analysis and Forecast IW-Trends No. 4 27. November 2017

Has the German Economy Reached its Limit?: Skilled Labour Shortages as a Brake on Growth

The German economy is performing significantly better than was expected in the first few months of this year. During the course of 2017, certain early fears – especially of a weakening of the global economy due to increasing protectionism – have proved ...

IW

Content element with id 8880 Content element with id 9713