Niet beschikbaar in het Nederlands
Ivelina Ilkova
- 1 August 2024
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 5, 2024Details
- Abstract
- Based on granular data at the product level, this box discusses whether and how the euro area and the United States have modified their import sourcing strategies since 2016, the role played by geopolitical tensions and the potential impact on import prices. It considers two different, but not mutually exclusive, strategies: increasing the number of sourcing countries and reducing the import market share of the main supplier country per product. Data suggest that both regions have increased, on average, the number of sourcing countries, particularly for those products mostly imported from geopolitically distant countries. Broadening the number of supplier countries has come at a cost, however, it has affected only a small share of total imports, with modest implications for inflation and the terms of trade. At the same time, evidence of a reduction in the import share of the main supplier country is more mixed and is generally associated with a shift towards cheaper – and not necessarily geopolitically closer – countries, suggesting the prevalence of cost considerations over supply-chain resilience and national security concerns.
- JEL Code
- F14 : International Economics→Trade→Empirical Studies of Trade
F51 : International Economics→International Relations, National Security, and International Political Economy→International Conflicts, Negotiations, Sanctions
F62 : International Economics→Economic Impacts of Globalization→Macroeconomic Impacts