Fashion industry (FI) - which has been characterized by a medium-low technological level and has undergone a deep liberalization process since the mid-90s - still accounts for a relevant share of manufacturing in Italy and Veneto. In Veneto, between 1995 and 2007, value added of FI decreased by a yearly average of 1.6 per cent. During the international crisis this reduction become faster; employment and the number of firms reduced as well. This competitive selection of firms and an internationalization process generated a productivity increase, which was stronger in Veneto than in Italy. Based on local firms’ balance sheets analysis, between 2007 and 2014 operating profitability considerably increased in footwear sector, which was characterized by larger foreign direct investment inflows. Profitability more than halved in clothing sector, mainly because of larger firms’ negative performances.
Keywords: Fashion Industry, Veneto, International Trade, Liberalization, Operating Profitability
Jel Code: L67, R11, F13