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

Emanuele Breda (emanuele.breda@bancaditalia.it) and Rita Cappariello (rita.cappariello@bancaditalia.it)

No 79, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper evaluates the extent of internationalisation of production between 1995 and 2006 for Italy and Germany. The analysis is based on a large set of indicators of international outsourcing including a new one, the direct and indirect import content of production, which also takes into account the import content of domestic inputs. In 2006 the intensity of international off-shoring was quite similar in the two countries, although slightly higher for Italian firms when only manufacturing was considered. From a dynamic point of view, between 1995 and 2000 the growth in off-shoring was substantial in both economies but stronger in Germany, which at least in manufacturing had started from a lower level. During the first years of the past decade the off-shoring intensity of the two economies stagnated, but in the last period under study (2004-06) their growth resumed at a fast pace, especially in Italy. This seems to suggest a change in strategies and a reorganisation of production in Italian firms. The new challenges posed by globalisation, by the diffusion of information and communication technologies, and by the adoption of the euro have induced the most dynamic Italian firms to rethink their organisation, including their degree of vertical specialisation.

Keywords: International outsourcing; input-output tables (search for similar items in EconPapers)
JEL-codes: C67 F14 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: A tale of two bazaar economies: an input-output analysis of Germany and Italy (2012)
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