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Will the EU Taxonomy Impact the Trade Specialisation of European Economies?

  • Monika Köppl-Turyna ORCID logo EMAIL logo and Wolfgang Schwarzbauer
From the journal The Economists’ Voice

Abstract

The introduction of the taxonomy will alter trade patterns and trade specialisation, in spite of the signs that EU members are specialised in industries and economic activities that are favoured by its introduction. The taxonomy is likely to further work not only directly but also through supply chains, as obtaining more attractive funding for companies is indirectly linked to the compliance of the company’s suppliers as well. However, managing the transition to green production will require further policy measures at the regional, national, and international levels. Given that several policy measures and initiatives are already in place, doubts can be raised as to whether the green transition can be achieved efficiently by the introduction of the taxonomy.

JEL Classification: F18; L50

Corresponding author: Monika Köppl-Turyna, EcoAustria - Institute for Economic Research, Am Heumarkt 10, 1030 Wien, Austria, E-mail:

Appendix

Table 4:

Specialisation patterns of Germany and France.

German competitive industries (versus EU median) French competitive industries (versus EU median)
ISIC code Industry RXA value (Germany) ISIC code Industry RXA value (France)
C17 Manufacture of paper and paper products 1.26 C20 Manufacture of chemicals and chemical products 1.2
C20 Manufacture of chemicals and chemical products 1.34 C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 1.8
C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 1.53 C22 Manufacture of rubber and plastic products 1.4
C22 Manufacture of rubber and plastic products 1.56 C30 Manufacture of other transport equipment 2.2
C27 Manufacture of electrical equipment 2.1 C31_C32 Manufacture of furniture; other manufacturing 0.7
C28 Manufacture of machinery and equipment n.e.c. 2.31 G46 Wholesale trade, except of motor vehicles and motorcycles 1.1
C29 Manufacture of motor vehicles, trailers and semi-trailers 2.77 H51 Air transport 1.8
C30 Manufacture of other transport equipment 1.1 J59_J60 Motion picture, video and television programme production, sound recording and music publishing activities; programming and broadcasting activities 1.4
E36 Water collection, treatment and supply 1.02 K66 Activities auxiliary to financial services and insurance activities 1.1
J59_J60 Motion picture, video and television programme production, sound recording and music publishing activities; programming and broadcasting activities 1.17 M69_M70 Legal and accounting activities; activities of head offices; management consultancy activities 1.6
M69_M70 Legal and accounting activities; activities of head offices; management consultancy activities 1.39 M72 Scientific research and development 2.8
M72 Scientific research and development 1.12 N Administrative and support service activities 2.3
N Administrative and support service activities 1.19 O84 Public administration and defence; compulsory social security 1.4
O84 Public administration and defence; compulsory social security 1.24 Q Human health and social work activities 1.2
R_S Other service activities 1.1
  1. Source: WIOT database, own calculations.

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Received: 2022-08-01
Accepted: 2022-11-16
Published Online: 2022-12-13

© 2022 Walter de Gruyter GmbH, Berlin/Boston

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