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The evolution of world trade and the Italian ‘anomaly': a new look

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Author Info
Michele Di Maio (Università di Macerata)
Federico Tamagni (Scuola Superiore Sant’Anna)

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Abstract

This work provides an empirical assessment of the 'sophistication' of the Italian international
specialization pattern and of its evolution during the period 1980¡2000. In particular we analyse
the well-known Italian trade 'anomaly' combining the information coming from the PRODY index
(Hausmann et al. (2005)) with the RCA index. Our results show that in the last two decades, the
world trade has been rapidly changing with Italy becoming increasingly more competitive and
specialized in products that are characterized by decreasing income/productivity levels. Thus,
while the Italian 'anomaly' was not a problem in the past, it may have become an obstacle to
future growth.

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Publisher Info
Paper provided by Macerata University, Department of Finance and Economic Sciences in its series Working Papers with number 39-2006.

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Date of creation: Oct 2006
Date of revision: Oct 2008
Publication status: Forthcoming in Rivista di Politica Economica
Handle: RePEc:mcr:wpdief:wpaper00039

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Related research
Keywords: PRODY index; RCA; Specialization pattern;

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References listed on IDEAS
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  1. Luca De Benedictis & Massimo Tamberi, 2004. "Overall Specialization Empirics: Techniques and Applications," Open Economies Review, Springer, vol. 15(4), pages 323-346, October. [Downloadable!]
  2. Luca De Benedictis & Marco Gallegati & Massimo Tamberi, 2008. "Semiparametric analysis of the specialization-income relationship," Journal of Economic Methodology, Taylor and Francis Journals, vol. 15(4), pages 301-306. [Downloadable!] (restricted)
  3. Andrea Brasili & Paolo Epifani & Rodolfo Helg, 2000. "On the Dynamics of Trade Patterns," CESPRI Working Papers 115, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2000. [Downloadable!]
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  4. Robert C. Feenstra & Andrew K. Rose, . "Putting Things In Order: Patterns Of Trade Dynamics And Growth," Department of Economics 97-14, California Davis - Department of Economics. [Downloadable!]
    Other versions:
  5. Luca De Benedictis, 2005. "Three Decades of Italian Comparative Advantages," The World Economy, Blackwell Publishing, vol. 28(11), pages 1679-1709, November. [Downloadable!] (restricted)
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