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Hidden Networks: Value Chain Vulnerability and Indirect Sourcing in the Nordic Region

Author

Listed:
  • Ali-Yrkkö, Jyrki
  • Bøegh Nielsen, Peter

Abstract

The findings demonstrate that regional Nordic trade contains significant hidden exposure to non-European markets. On average, 11% of intermediate imports from Nordic neighbors originate from outside Europe at the second tier. A substantial portion of this non-European exposure is concentrated in China (27.1%) and other BRICS+ countries (16.3%), representing a vulnerability that standard trade statistics, based on only direct trade, fail to capture. The methodology provides a framework for future pan-European value chain analysis.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Bøegh Nielsen, Peter, 2026. "Hidden Networks: Value Chain Vulnerability and Indirect Sourcing in the Nordic Region," ETLA Reports 181, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:181
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    References listed on IDEAS

    as
    1. Richard Baldwin & Rebecca Freeman & Angelos Theodorakopoulos, 2023. "Hidden Exposure: Measuring US Supply Chain Reliance," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 54(2 (Fall)), pages 79-167.
    2. Richard Baldwin & Rebecca Freeman & Angelos Theodorakopoulos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England Staff Working Paper series 996, Bank of England.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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