Italian Regions in Global Value Chains: An Input-output Approach

Abstract

This work uses input-output techniques to analyse the value added content of the interregional and international trade of Italian regions, which are characterized by marked differences in their level of development and production structure. Regions differ from one another in their degree of dependence on international and other regions’ demand: in those of the Centre and North, the contribution of foreign demand to regional production of value added is greater than in Southern Italy, where the role of national demand is much more important. Most regions show a significant participation in global value chains for given amounts of exports to other countries and regions which, however, are smaller overall in relation to total production in the South. The latter is also somewhat peripheral in the geography of international trade and depends to a greater extent on national suppliers; moreover, the supply ties between the different regions of the South are weak compared with the ties with some regions of the Centre and North.

Keywords: global value chains, input-output tables, trade in value added, regional trade

JEL Classification: E16, F1, F14, F15