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The Italian value chain in the pandemic: the input–output impact of Covid-19 lockdown

Author

Listed:
  • Raffaele Giammetti

    (Università Politecnica Delle Marche)

  • Luca Papi

    (Università Politecnica Delle Marche)

  • Désirée Teobaldelli

    (Università Di Urbino)

  • Davide Ticchi

    (Università Politecnica Delle Marche)

Abstract

This paper investigates the role of the domestic value chain in transmitting the economic impact of Covid-19 lockdown measures. By employing techniques of complex networks analysis and input–output traditional tools, the study identifies those sectors that are key in the complex structure of the Italian supply chain and provides different rankings of the most ‘systemically important’ industries involved in the Covid-19 lockdown. The results suggest that by stopping the production process of many key sectors, the lockdown has led to a drop in input and output that, in turn, has generated a lock of about 52% of total circulating value added, 30% of which has been locked within indirect value chains. Further, by adding sectoral physical proximity indexes to the scenarios analysis, the method developed here provides a tool to guide governments in designing safe and efficient reopening policies.

Suggested Citation

  • Raffaele Giammetti & Luca Papi & Désirée Teobaldelli & Davide Ticchi, 2020. "The Italian value chain in the pandemic: the input–output impact of Covid-19 lockdown," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 483-497, September.
    • Handle: RePEc:spr:epolin:v:47:y:2020:i:3:d:10.1007_s40812-020-00164-9
    DOI: 10.1007/s40812-020-00164-9
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    References listed on IDEAS

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    Cited by:

    1. Askar Boranbayev & Nataliia Obrosova & Alexander Shananin, 2023. "Technology of Input–Output Analysis with CES Production: Application for Studying the Kazakhstan Supply Chain during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    2. Davide Villani & Marta Fana, 2021. "Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 137-157, June.
    3. Tony Aspromourgos & Kenji Mori & Masashi Morioka & Arrigo Opocher & J. Barkley Rosser & Yoshinori Shiozawa & Kazuhisa Taniguchi & Heinz D. Kurz & Neri Salvadori, 2022. "Symposium on Yoshinori Shiozawa, Masashi Morioka and Kazuhisa Taniguchi (2019), Microfoundations of evolutionary economics, Tokyo: Springer Japan," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 2-48, February.
    4. Krista Danielle S. Yu & Kathleen B. Aviso & Joost R. Santos & Raymond R. Tan, 2020. "The Economic Impact of Lockdowns: A Persistent Inoperability Input-Output Approach," Economies, MDPI, vol. 8(4), pages 1-14, December.
    5. Michela Piccarozzi & Cecilia Silvestri & Patrizio Morganti, 2021. "COVID-19 in Management Studies: A Systematic Literature Review," Sustainability, MDPI, vol. 13(7), pages 1-28, March.
    6. Giammetti, Raffaele & Papi, Luca & Teobaldelli, Désirée & Ticchi, Davide, 2022. "The optimality of age-based lockdown policies," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 722-738.

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    More about this item

    Keywords

    Covid-19; Lockdown; Global value chains; Production networks;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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