A Tale of Two Bazaar Economies: An Input-Output Analysis for Germany and Italy
Emanuele Breda () and
Rita Cappariello ()
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Emanuele Breda: BI - Banca d´Italia
Rita Cappariello: BI - Banca d´Italia
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Abstract:
This paper evaluates the extent of production internationalisation in Italy and Germany between 1995 and 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 off-shoring, 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 reorganization of production by Italian firms. The new challenges posed by globalization, the widespread take-up of information and communication technologies, and the adoption of the euro have induced the most dynamic Italian firms to rethink their organizational set-up, including the degree of vertical specialisation.
Keywords: International Outsourcing; Input-output Tables (search for similar items in EconPapers)
Date: 2013-06
Note: View the original document on HAL open archive server: https://hal.science/hal-03470015
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Published in European Review of Industrial Economics and Policy , 2013, 6
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03470015
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