We study how disruptions to the supply of foreign critical inputs (FCIs) might affect value added at different levels of aggregation. FCIs are inputs primarily sourced from extra-EU countries with highly concentrated supply, or consisting in advanced technology products, or which are key to the green transition. Using firm-level customs and balance sheet data for Belgium, Spain, France, Italy and Slovenia, our framework allows us to assess how much – and how differently – geoeconomic fragmentation might affect European economies.

Equity financing involves selling a portion of the company’s equity to investors in exchange for capital, and debt financing involves borrowing money that must be repaired with interest. In equity financing, the investors become partial owners of the company and have the power to make decisions, whereas, in debt financing, the company retains full ownership ... Read more

Are you familiar with the financial crises that hit the world over centuries? Have you ever wondered what causes changes and shifts in the financial industry, which sometimes causes sudden and unexpected downfalls and losses? The financial industry has faced numerous setbacks over the years. The financial markets have faced numerous challenges and crises worldwide, from ... Read more

Macroeconomics is the study of the economy as a whole and its broad trends and interactions with general economic factors. It focuses on the economy’s performance, such as inflation, unemployment, interest rates, economic growth, business cycles, foreign exchange rates, international trade, and balance of payments. Macroeconomics is important, especially for governments because it helps them ...