The internationalization of the Italian productive system

This work presents, in a single framework, the results of several recent studies, carried out by Bank of Italy researchers, on the internationalization of the Italian productive system. The notion of internationalization is considered not only from the perspective of direct investments abroad but also in the context of trade flows and of the capacity to attract foreign direct investments. In any case, internationalization has increased very rapidly in the last twenty years, globally as well as in Italy. However, our country is characterized by lower direct investment flows and stocks, both outgoing and incoming, compared to the other main European countries. The research discusses the recent trends in direct investment flows, the costs and benefits of direct investment, the effects of the crisis, the role of international procurement, the reasons behind Italy�s lag and, finally, the system of public policies and institutions supporting the process of internationalization.