No. 861 - Inputs in distress: geoeconomic fragmentation and firms' sourcing

by Ludovic Panon, Laura Lebastard, Michele Mancini, Alessandro Borin, Peonare Caka, Gianmarco Cariola, Dennis Essers, Elena Gentili, Andrea Linarello, Tullia Padellini, Francisco Requena and Jacopo Timini
July 2024
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This paper quantifies the impact on the value added of manufacturing firms from five EU countries (Belgium, France, Italy, Slovenia and Spain) of a possible decline in the supply of foreign critical inputs, at risk of disruption, from China and other China-aligned countries.

This paper finds that halving the imports of foreign critical inputs from China-aligned countries would result in a decrease in manufacturing value added of between 2 and 3 per cent for the five economies considered; the decline would be sharper in Italy and Slovenia. The most affected industries would be electronics, chemicals, and machinery and equipment.

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  1. 17 July 2024
    No. 861 - Inputs in distress: geoeconomic fragmentation and firms' sourcing
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