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Exploring the recent resilience of Italy's goods exports: Competitiveness, energy intensity and supply bottlenecks

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  • Simona Giglioli

    (Bank of Italy)

  • Claire Giordano

    (Bank of Italy)

Abstract

We explore three possible explanations of the recent resilience of Italy's foreign sales in comparison with the other three main euro-area economies, namely price-competitiveness dynamics, developments in energy-intensive (EI) and non-energy-intensive (NEI) manufacturing sectors, the impact of global supply bottlenecks. Price-competitiveness trends were particularly favourable in Italy in 2022. Furthermore, the composition of Italy’s manufacturing exports was not strongly tilted towards EI sectors and the decline in EI foreign sales was relatively small, leading to a more limited negative contribution of these industries to aggregate export growth compared with Germany. Finally, according to cross-country firm survey data, manufacturing in Italy was significantly less affected by shortages of materials and equipment than in the other three countries. A standard regression analysis of goods exports trends confirms that the above factors contributed to explaining Italy's strong performance in 2022.

Suggested Citation

  • Simona Giglioli & Claire Giordano, 2023. "Exploring the recent resilience of Italy's goods exports: Competitiveness, energy intensity and supply bottlenecks," Questioni di Economia e Finanza (Occasional Papers) 785, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_785_23
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    References listed on IDEAS

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    1. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    2. SATO Kiyotaka & SHIMIZU Junko & Nagendra SHRESTHA & Shajuan ZHANG, 2015. "Industry-specific Real Effective Exchange Rates in Asia," Discussion papers 15036, Research Institute of Economy, Trade and Industry (RIETI).
    3. Francesco Corsello & Marco Flaccadoro & Stefania Villa, 2023. "Quantity versus price dynamics: the role of energy and bottlenecks in the Italian industrial sector," Questioni di Economia e Finanza (Occasional Papers) 781, Bank of Italy, Economic Research and International Relations Area.
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    Cited by:

    1. Gloria Allione & Claire Giordano, 2023. "Are the Happy Few still happy? Exporter heterogeneity during the COVID-19 pandemic in Italy," Questioni di Economia e Finanza (Occasional Papers) 816, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    goods exports; price competitiveness; energy intensity; supply bottlenecks;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F10 - International Economics - - Trade - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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