Impact of Globalization and Internationalization Processes on Added Value in EU Countries

Abstract

Research Background: The paper focuses on the specification of categories of the globalization and internationalization process in terms of origin, development, definition and content. Using European Commission statistics for the period 2013-2017, the EU28 countries are divided into countries that started the EU (Germany, France, Italy, Belgium, the Netherlands, Luxembourg) and countries that joined the EU before 2000 (Denmark, Norway, Finland, Portugal, Austria, Greece, Spain, Sweden, Great Britain), and other countries of the so-called former Eastern bloc (Czech Republic, Slovakia, Hungary, Poland). For such defined EU countries, a different level of involvement in the globalizing common economy of the European Union as well as a different level of involvement in foreign markets, depending on the level of national economies, can be expected. Purpose of the Article: A test set of 338,788 companies from across the EU was used to analyse value added associated with each indicator (value added at factor cost, gross (average) value added per person employed, number of workers, enterprise size classes and selected industries, namely manufacturing, construction, engineering, transportation and logistics). The membership of the countries in the European Monetary Union was also taken into account. Methods: Mathematical and statistical methods of correlation analysis and paired T-test were used for value added analysis. Findings & Value Added: The outputs of the analysis indicated a high level of statistical conclusive evidence in terms of the impact of value added on each enterprise size class across the sectors concerned as well as on the structure of production and the number of active workers.

Keywords

• value added
• globalization
• global value chain
• worker efficiency