Demand and Supply Exposure Through Global Value Chains: Euro-Mediterranean Countries During Covid
This paper tries to examine how the COVID-19 shock affects different countries through their regional integration and their exposure to Global Value Chains (GVCs). Using input-output tables (EORA 2016), our contribution is threefold. First, building on Pahl et al. (2021), we conceptually revise the approaches to analyse input-output relationships.
In particular, we underline the difference between the bilateral flow of value-added and trade and distinguish between the producers and consumers of value-added. Second, we distinguish between the supply and demand channels through which these countries can be affected by the disruptions in GVCs. Third, we apply this empirical exercise on an understudied region, namely the Mediterranean region that is characterised by its involvement in several trade agreements that might boost their integration into GVCs.
Our main findings show that, first, most of the countries have relatively larger backward GVC linkages than forward ones. Second, on the northern shore of the Mediterranean, Italy and France are net suppliers of value added since they produce more value-added absorbed abroad than the foreign value-added they consume. Third, on the Southern shore, Tunisia is the most integrated in GVCs but is also a net consumer of foreign value added. Morocco participates in GVCs but mainly in upstream segments. In contrast, Jordan followed by Egypt, are less involved in GVCs. Fourth, our results also highlight the limited integration between Southern shore partners, whose integration is almost completely driven by linkages with Southern European developed countries. This is why Jordan is much less affected by the shock than Tunisia and Morocco.
Reshaping EU Policies Towards the Eu-Africa Partnership in the ‘New Normal’ Era of the Post Covid-19 World
Over the last couple of decades, the European and African economic landscapes have changed considerably. The two continents are facing increasing interconnected challenges and opportunities. This leads to a growing awareness for a more global and integrated vision for the whole Europe-Mediterranean-Africa region (EMA). In addition to the challenges related to security, stability, unemployment, education, competitiveness, migration, demography and climate change, the need for a stronger collective Euro-Med-African resilience has become even more urgent and strategic within the framework of the new context created by the Covid 19 crisis.
The aim of this policy paper is to present the new parameters to take into consideration in order to reshape the relations between the EU and its Mediterranean and African neighbours. In particular, the policy papers highlights the importance of an increased South-South cooperation and it illustrates this through the example of Morocco’s strong involvement in the Continent.
Morocco In Its Euro-Mediterranean space: Cradle of the Future
The objective of this policy paper is to develop the idea that Europe, in its regional relations, needs two model partner countries in the South, as in the East, to act as the locomotive for other countries. In a region full of turmoil, Morocco, through its various advances, stability and reforms of all kinds, is entitled to position itself as a ‘pilot country’ and a ‘privileged partner’. Nature abhors a vacuum, the Mediterranean likewise! In addition, this hypothesis seems largely corroborated by the history of European construction. France and Germany are the two countries that have placed their cooperation under the auspices of European construction more than any others. Morocco remains an exceptional country, in terms of all its multifaceted advances, and it is entitled to position itself in the role of a ‘pilot country’ and ‘privileged partner’ and to establish itself as the only Mediterranean country with which the EU could develop a deep relationship.