Trading Processing for Goods: A Different View from the Past on Italian Trade Flows?

28 Pages Posted: 6 Feb 2016

See all articles by Ludovico Bracci

Ludovico Bracci

National Institute of Statistics (Istat)

Silvia Fabiani

Bank of Italy

Alberto Felettigh

Bank of Italy

Date Written: July 23, 2015

Abstract

The new international standards for national accounts and balance of payments statistics (ESA 2010 and BPM6) introduced a new treatment of goods sent abroad for processing without changing ownership, now considered as an exchange of services. In this paper we explore to what extent this innovation affects the structural analysis of Italian trade flows, in particular along the geo-sectoral dimension. We also draw, for the first time, a detailed picture of exports and imports of processing services in order to shed light on how Italian firms participate, through this channel, in global value chains. Our findings largely validate the geo-sectoral interpretations based on the previous statistical standards. The data reveal that Italy is historically a net exporter of processing services, especially for high-technology products; flows are highly concentrated across destinations and sectors.

Keywords: trade, processing services, global value chains

JEL Classification: F10, F14, F62

Suggested Citation

Bracci, Ludovico and Fabiani, Silvia and Felettigh, Alberto, Trading Processing for Goods: A Different View from the Past on Italian Trade Flows? (July 23, 2015). Bank of Italy Occasional Paper No. 284. Available at SSRN: https://ssrn.com/abstract=2728299 or http://dx.doi.org/10.2139/ssrn.2728299

Ludovico Bracci

National Institute of Statistics (Istat) ( email )

Via Cesare Balbo 16
00184 Rome, 0185
Italy

Silvia Fabiani

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Alberto Felettigh (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
249
PlumX Metrics