Research Papers

Work in Progress

Non-academic publications

CEPR Paris Report (incoming), CEPR's Paris Symposium 2023

Media: Bruegel's podcast

Abstract: We review and extend upon existing literature using product-level trade data to identify trade dependencies that expose the European Union to potential disruptions. While acknowledging the  significance of concentrated foreign input sourcing as a source of vulnerability, a comprehensive assessment of vulnerabilities should also consider the potential for substituting away from disrupted  input sources, both domestically and abroad. This may necessitate devising novel statistical measures at the European level. We present a novel methodology that identifies trade dependencies  by integrating these substitution sources. Our review encompasses normative arguments justifying  public interventions to improve the resilience of value chains. We intersect our identified dependencies with a measure of geopolitical risk, their upstreamness in the value chain, and also focus  on critical products and strategic green technologies. The specific targeting of these policies varies depending on the nature of risks they aim to mitigate. Finally, we discuss the range of policy tools available for crafting a resilience policy.


Contribution/Research Assistance to the following Policy Papers: