An enhanced methodology to monitor the EU’s strategic dependencies and vulnerabilities

Roman Arjona, William Connell () and Cristina Herghelegiu ()
Additional contact information
William Connell: European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit
Cristina Herghelegiu: European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit

No WP2023/14, Single Market Economics Papers from Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team

Abstract: This article develops an enhanced bottom-up and data-driven methodology to detect EU strategic dependencies using highly disaggregated product-level trade data. It identifies 204 products in sensitive industrial ecosystems where the EU experiences an important level of foreign dependencies. A subset of these products are then identified as particularly problematic given that their world trade networks can experience Single Point of Failures (SPOF). Since dependent products bear important risks in the event of unexpected disruptions, identifying them is the first step towards building resilience. Consequently, this analysis provides evidence based solutions to the EU’s open strategic autonomy agenda, including the efforts to diversify EU supply chains, to pursue partnerships with like-minded partners, and to strengthen the EU’s internal industrial capacity.

Keywords: dependencies; supply chain disruptions; single points of failure; substitutability; trade networks; early warning (search for similar items in EconPapers)
JEL-codes: F14 F61 L52 L60 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2023-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ec.europa.eu/docsroom/documents/54234/atta ... en/renditions/native (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bda:wpsmep:wp2023/14

DOI: 10.2873/768035

Access Statistics for this paper

More papers in Single Market Economics Papers from Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team Contact information at EDIRC.
Bibliographic data for series maintained by GROW A1 secretariat ().