Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301410 
Year of Publication: 
2024
Citation: 
[Journal:] Intereconomics [ISSN:] 1613-964X [Volume:] 59 [Issue:] 3 [Year:] 2024 [Pages:] 146-153
Publisher: 
Sciendo, Warsaw
Abstract: 
Supply security is threatened by technical, business, natural and policy shocks, as well as geopolitical tensions. Is there a rationale for policy intervention? If yes, what are efficient and effective measures that achieve de-risking? This article first explains why private incentives do not generally lead to an optimal diversification of supply sources, and then discusses measures that strengthen protection against and resilience in the face of shocks. Governments should refrain from policies that further disincentivise diversification such as the ex post skimming of excess profits when adverse shocks force the halt of production and should work on framework conditions that facilitate diversification. Importantly, most measures are best taken at the EU level.
Subjects: 
Foreign trade
Supply chain
Economic security
JEL: 
F13
F51
L5
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.