IDEAS home Printed from https://ideas.repec.org/p/bda/wpsmep/wp2023-14.html

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

Author

Listed:
  • Arjona, Román

    (European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit)

  • Connell, William

    (European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit)

  • Herghelegiu, Cristina

    (European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit)

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.

Suggested Citation

  • Arjona, Román & Connell, William & Herghelegiu, Cristina, 2023. "An enhanced methodology to monitor the EU’s strategic dependencies and vulnerabilities," Single Market Economics Papers WP2023/14, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team.
    • Handle: RePEc:bda:wpsmep:wp2023/14
    DOI: 10.2873/768035
    as

    Download full text from publisher

    File URL: https://ec.europa.eu/docsroom/documents/54234/attachments/1/translations/en/renditions/native
    Download Restriction: no
    File URL: https://libkey.io/10.2873/768035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rebecca Freeman & Richard Baldwin, 2022. "Risks and Global Supply Chains: What We Know and What We Need to Know," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 153-180, August.
    2. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    3. DACHS Bernhard & NEULÄNDTNER Martina & STEHRER Robert, 2022. "The EU and Global Production Networks: The Length of Value Chains, Patterns and Dynamics of Industrial Ecosystems," JRC Research Reports JRC130873, Joint Research Centre.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ludovic Panon & Laura Lebastard & Michele Mancini & Alessandro Borin & Peonare Caka & Gianmarco Cariola & Dennis Essers & Elena Gentili & Andrea Linarello & Tullia Padellini & Francisco Requena & Jaco, 2024. "Inputs in Distress: Geoeconomic Fragmentation and Firms’ Sourcing," Working Papers 2436, Banco de España.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oliver Reiter & Robert Stehrer, 2023. "Assessing the importance of risky products in international trade and global value chains," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 7-33, February.
    2. Klaus Weyerstraß & Martin Ertl & Daniel Schmidtner & Adrian Wende & Hannes Zenz, 2025. "Die Einbettung des österreichischen Außenhandels in die globale Arbeitsteilung," FIW Research Reports series y:2025:m:11, FIW.
    3. Imbruno, Michele & Cariolle, Joël & de Melo, Jaime, 2025. "Digital connectivity and firm participation in foreign markets: An exporter-based bilateral analysis," Journal of Development Economics, Elsevier, vol. 177(C).
    4. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    5. Chen, Natalie & Juvenal, Luciana, 2022. "Markups, quality, and trade costs," Journal of International Economics, Elsevier, vol. 137(C).
    6. Hilel Hamadache & Sophie S. Drogue, 2014. "Staple food market regulation in Algeria, what is the alternative policy? A CGE analysis for wheat," Post-Print hal-02795719, HAL.
    7. Francesco Guerra, 2023. "How taste proximity affects consumer quality valuation of imported varieties: Evidence from the French food sector," The World Economy, Wiley Blackwell, vol. 46(9), pages 2857-2890, September.
    8. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Do China and Russia undermine Western sanctions? Evidence from DiD and event study estimation," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 132-160, February.
    9. Christopher Hansman & Jonas Hjort & Gianmarco León-Ciliotta & Matthieu Teachout, 2020. "Vertical Integration, Supplier Behavior, and Quality Upgrading among Exporters," Journal of Political Economy, University of Chicago Press, vol. 128(9), pages 3570-3625.
    10. Benno Ferrarini, 2013. "Vertical Trade Maps," Asian Economic Journal, East Asian Economic Association, vol. 27(2), pages 105-123, June.
    11. Ewa Cieślik, 2024. "From traditional to digital servicification: Chinese services in European manufacturing," Networks and Spatial Economics, Springer, vol. 24(4), pages 927-965, December.
    12. Görg, Holger & Jacobs, Anna & Meuchelböck, Saskia, 2024. "Who is to suffer? Quantifying the impact of sanctions on German firms," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    13. Gao, Yue & Whalley, John & Ren, Yonglei, 2014. "Decomposing China's export growth into extensive margin, export quality and quantity effects," China Economic Review, Elsevier, vol. 29(C), pages 19-26.
    14. Joyez, Charlie, 2025. "Robustness with adaptation. Ownership networks of multinationals through COVID-19," Network Science, Cambridge University Press, vol. 13, pages 1-1, January.
    15. d'Artis Kancs, 2024. "Uncertainty of supply chains: Risk and ambiguity," The World Economy, Wiley Blackwell, vol. 47(5), pages 2009-2033, May.
    16. Tine Buyl & Thomas Gehrig & Jonas Schreyögg & Andreas Wieland, 2022. "Resilience: A Critical Appraisal of the State of Research for Business and Society," Schmalenbach Journal of Business Research, Springer, vol. 74(4), pages 453-463, December.
    17. Dick Nuwamanya Kamuganga, 2012. "In this paper, I use a stratified Cox Proportional Hazard Model to econometrically evaluate the effects of intra-Africa regional trade cooperation and other underlying factors on Africa`s export survival. Using a highly disaggregated dataset of bilat," IHEID Working Papers 16-2012, Economics Section, The Graduate Institute of International Studies.
    18. Francois de Soyres & Ana Maria Santacreu & Henry L. Young, 2023. "Demand-Supply Imbalance during the COVID-19 Pandemic: The Role of Fiscal Policy," Review, Federal Reserve Bank of St. Louis, vol. 105(1), pages 21-50, January.
    19. Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," PSE - G-MOND WORKING PAPERS hal-00959394, HAL.
    20. Daza, Brian, 2024. "Government Spending Multipliers and Distribution of Commodity Booms in the Spatial Economy," Working Papers 690, Research Seminar in International Economics, University of Michigan.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bda:wpsmep:wp2023/14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: GROW A1 secretariat (email available below). General contact details of provider: https://edirc.repec.org/data/dgeecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.