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European sectoral analysis
The expansion of the European Union to 27 members in 2007 increased the number of consumers in the single market to 490m - companies across the EU benefited from a larger market for export goods, and some of the EU15 economies benefited from a supply of relatively cheap labour. Arguably, however, an even greater impact has been caused by the globalisation of manufacturing processes, with many traditional industries across the whole EU27 struggling to compete against lower-cost producers in Asia and beyond – these changes have put even greater pressure on firms to lower costs and improve their productive performance.
CE’s European sectoral analysis can be split along three main strands:
1. Competitiveness studies
Since 2007 CE has been part of an on-going sector competitiveness framework undertaking studies for the European Commission (DG Enterprise and Industry). The framework consortium is comprised of a number of European organisations (Ecorys, the Ifo Institute, IDEA Consult, the Danish Technological Institute, Euromonitor, and the Vienna Institute for Economic Studies, among others), who have come together with the objective of better understanding the factors that affect European sector competitiveness at all levels: microeconomic, structural, and macro-economic.
CE has been involved in a range of sector studies, including the ceramics and glass sectors, metalworking and metal articles, mechanical engineering, non-ferrous metals, the internationalisation of value chains, and a recent study on comparative unit labour costs. All these studies, and more, can be found on the project website.
2. Detailed modelling work
CE provides an in-depth analysis of competitiveness in the European economies by splitting production into 69 sectors and examining the complex interactions between them, their relationships with the wider economy, and the trade of goods and services across the EU members and with global markets. This analysis extends to cover labour market issues and environmental concerns, allowing us to offer a fully-integrated approach to policy analysis and impact assessment.
The analysis makes extensive use of the E3ME model and its detailed databases. E3ME is based on the European System of Accounts (ESA95) and provides the sectoral disaggregation described above in each of the EU27 member states. It is therefore ideally suited for industry level analysis and can capture inter-industry effects that would not be present in more widely-available macroeconomic models. More information about E3ME can be found on the model website and, with appropriate training, the model is available for licensed use.
3. Econometric assessment
In addition to formal modelling, CE offers a flexible approach to econometric assessment based on the latest techniques. This allows an even more detailed means of assessment than that offered by E3ME, although it lacks the feedback effects usually present in the model. For this type of sectoral analysis a combination of E3ME and this direct estimation offers a comprehensive means of assessment.
For more information contact
Associate Director, International Modelling