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Structural transformation in manufacturing and the role of business services: evidence from the italian economy

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  • Claudio Di Berardino

Abstract

This article investigates structural change in Italy, taking into account the evolution of manufacturing and interindustrial linkages. In particular, the analysis aims to provide new findings on the extent and principal aspects of deindustrialization. According to the «vertical» perspective, the input-output tables for a set of vertically integrated sectors have been transformed, so the number of hours worked that directly and indirectly satisfy final demand for goods can be estimated. The findings concerning the distribution of hours worked obtained by applying a subsystem approach show large differences in comparison to the sectoral approach. On average, when we adopt a subsystem approach, the share of manufacturing rises by about ten percentage points in the economy as a whole. This result clearly underestimates the ability to generate employment in manufacturing. The links between the development of business services and their role in manufacturing are also explored.

Suggested Citation

  • Claudio Di Berardino, 2017. "Structural transformation in manufacturing and the role of business services: evidence from the italian economy," L'industria, Società editrice il Mulino, issue 4, pages 495-516.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/89552:y:2017:i:4:p:495-516
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    Cited by:

    1. Cresti, Lorenzo & Dosi, Giovanni & Fagiolo, Giorgio, 2023. "Technological interdependencies and employment changes in European industries," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 41-57.
    2. Lorenzo Cresti & Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2023. "Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 869-906, November.
    3. Lorenzo Cresti & Maria Enrica Virgillito, 2022. "Strategic sectors and essential jobs: a new taxonomy based on employment multipliers," LEM Papers Series 2022/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.

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