A tale of two bazaar economies: an input-output analysis of Germany and Italy
Journal title ECONOMIA E POLITICA INDUSTRIALE
Author/s Emanuela Breda, Rita Cappariello
Publishing Year 2012 Issue 2012/2
Language Italian Pages 27 P. 111-137 File size 334 KB
DOI 10.3280/POLI2012-002005
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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: International outsourcing, input-output tables
Jel codes: F14, C67
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Emanuela Breda, Rita Cappariello, A tale of two bazaar economies: an input-output analysis of Germany and Italy in "ECONOMIA E POLITICA INDUSTRIALE " 2/2012, pp 111-137, DOI: 10.3280/POLI2012-002005