The Role of Critical Raw Material Imports in Shaping Economic Competitiveness within the European Union

Abstract

Critical raw materials (CRMs) represent essential resources for several strategic sectors in the European Union and strategies are necessary to reduce dependence on imports and improve the efficiency of their use. The European Union is facing significant challenges in diversifying supply chains, implementing effective sustainability standards, and reducing strategic dependencies on imports. Our study investigates the impact of critical raw material (CRM) imports on the competitiveness of the European market, addressing significant gaps in the existing literature regarding this relationship. Utilizing quarterly import values of CRMs for the EU during the period 2023-2024, the research employs a linear regression model to explore the correlation between CRM imports and economic competitiveness. The findings underscore the complexities of the relationship between CRM imports and EU competitiveness, highlighting the need for strategic policy frameworks that enhance recycling rates, promote research into alternative materials, and ensure sustainable practices in raw material extraction. This research contributes to a deeper understanding of the dynamics between resource dependency and market competitiveness, providing insights for policymakers aiming to secure a sustainable and competitive European economy.

Keywords

• critical raw materials
• competitiveness
• imports
• supply chain diversification
• sustainability