Trade shocks, product mix adjustment and productivity growth in Italian manufacturing

Maria Gabriela Ladu (), Andrea Linarello and Filippo Oropallo ()
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Maria Gabriela Ladu: University of Sassari and ISTAT

No 513, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this paper we use firm-level data on the universe of Italian manufacturing multi-product exporters to test whether demand shocks in export markets lead multi-product exporters to increase their productivity. The main mechanism behind the documented productivity gains is the reallocation of resources across products within firms (Mayer et al., 2014 and 2016). Intuitively, the increased demand stemming from foreign markets will induce firms to adjust their product-mix by moving inputs from low to high productive/profitable uses. We find that these productivity gains are significant and account for about 30 per cent of aggregate productivity growth in the manufacturing sector.

Keywords: Italian manufacturing sector; export; trade shocks; productivity (search for similar items in EconPapers)
JEL-codes: D22 F14 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-eff, nep-eur, nep-fmk and nep-int
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Trade shocks, product mix adjustment and productivity growth in Italian manufacturing (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_513_19

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