A tale of two bazaar economies: an input-output analysis of Germany and Italy

Emanuele Breda () and Rita Cappariello ()

ECONOMIA E POLITICA INDUSTRIALE, 2012, vol. 2012/2, issue 2, 111-137

Abstract: The paper evaluates the extent of production internationalisation in Italy and Germany from 1995 to 2007. The analysis is based on a broad set of international outsourcing indicators to which we have added a new indicator to take account also of the import content of domestic inputs: the direct and indirect import content of production. In 2007, both countries showed a similar intensity of international offshoring, although Italian manufacturing firms showed a slightly higher rate. From a dynamic viewpoint, both economies spurred substantial growth in off-shoring in 1995-2000, although the growth was stronger in Germany, where at least manufacturing started from a lower level. In 2001-2003, off-shoring levels stagnated in both economies, although growth quickly resumed in 2004-2007, suggesting a shift in the strategic direction and the reorganisation of production by Italian firms. The new challenges posed by globalisation, the widespread take-up of information and communication technologies, and the adoption of the euro have induced the most dynamic Italian firms to retool their organisational set-up, including the degree of vertical specialisation.

Keywords: Utilizzo di input importati; tavole input-output (search for similar items in EconPapers)
JEL-codes: C67 F14 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (6)

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Working Paper: A tale of two bazaar economies: an input-output analysis for Germany and Italy (2010)
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