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On the Economic and Health Impact of the COVID-19 Shock on Italian Regions: A Value Chain Approach

Author

Listed:
  • Tommaso Ferraresi

    (Istituto Regionale per la Programmazione Economica della Toscana (IRPET))

  • Leonardo Ghezzi

    (Istituto Regionale per la Programmazione Economica della Toscana (IRPET))

  • Fabio Vanni

    (Sciences Po, OFCE)

  • Alessandro Caiani

    (IUSS Pavia)

  • Mattia Guerini

    (Université Côte d'Azur, CNRS, GREDEG, France
    Sant'Anna School of Advanced Studies
    Sciences Po., OFCE)

  • Francesco Lamperti

    (Institute of Economics and EMbeDS, Scuola Superiore Sant'Anna
    RFF-CMCC European Institute on Economics and the Environment)

  • Severin Reissl

    (IUSS Pavia)

  • Giorgio Fagiolo

    (Institute of Economics and EMbeDS, Scuola Superiore Sant'Anna)

  • Mauro Napoletano

    (OFCE Sciences-Po
    SKEMA Business School)

  • Andrea Roventini

    (Institute of Economics and EMbeDS, Scuola Superiore Sant'Anna
    Sciences Po, OFCE)

Abstract

In this work, we evaluate the exposure of Italian regions to the risk associated with the spread of COVID-19 through a two-step value chain approach. First, we estimate the degree of participation of Italian regions in a plurality of value chains linked to consumption, investment and exports. We distinguish between value chains aimed at satisfying essential needs and supply chains activated by needs characterized by a lower level of necessity in line with the restriction measures implemented by the Italian government. Second, we investigate the different levels of contagion risk associated with each value chain and the possibility of reducing it through remote working. An exercise on policy measures implemented by the Italian government during Fall 2020 completes the paper. We find that regions are affected differently by lockdown policies because of their high heterogeneity in the degree of embeddedness within different value chains and because their sectoral contributions to each of them. As a result, Italian regions are associated with very diverse potentials for mitigating contagion risk via remote working practices. Finally, we find evidence that economic and contagion risks positively correlate in non essential value chains, while they are negatively associated in the production of medium-necessity and essential goods and services. In turn, strong lockdowns induce substantially different trade-offs across regions, depending on how regions participate to value chains.

Suggested Citation

  • Tommaso Ferraresi & Leonardo Ghezzi & Fabio Vanni & Alessandro Caiani & Mattia Guerini & Francesco Lamperti & Severin Reissl & Giorgio Fagiolo & Mauro Napoletano & Andrea Roventini, 2021. "On the Economic and Health Impact of the COVID-19 Shock on Italian Regions: A Value Chain Approach," GREDEG Working Papers 2021-18, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
  • Handle: RePEc:gre:wpaper:2021-18
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    References listed on IDEAS

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    Cited by:

    1. Mattia Guerini & Lionel Nesta & Xavier Ragot & Stefano Schiavo, 2022. "The Zombification of the Economy? Assessing the Effectiveness of French Government Support During COVID-19 Lockdown," LEM Papers Series 2022/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Severin Reissl & Alessandro Caiani & Francesco Lamperti & Tommaso Ferraresi & Leonardo Ghezzi, 2022. "A regional Input-Output model of the Covid-19 crisis in Italy: decomposing demand and supply factors," LEM Papers Series 2022/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Domenico Delli Gatti & Severin Reissl & Enrico Turco, 2021. "V for Vaccines and Variants," CESifo Working Paper Series 9291, CESifo.
    4. Severin Reissl & Alessandro Caiani & Francesco Lamperti & Mattia Guerini & Fabio Vanni & Giorgio Fagiolo & Tommaso Ferraresi & Leonardo Ghezzi & Mauro Napoletano & Andrea Roventini, 2021. "Assessing the economic impact of lockdowns in Italy: a computational input-output approach," Working Papers hal-03373672, HAL.
    5. Severin Reissl & Alessandro Caiani & Francesco Lamperti & Mattia Guerini & Fabio Vanni & Giorgio Fagiolo & Tommaso Ferraresi & Leonardo Ghezzi & Mauro Napoletano & Andrea Roventini, 2021. "Assessing the economic effects of lockdowns in Italy: a computational Input-Output approach," LEM Papers Series 2021/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    Keywords

    COVID-19 lockdown; value chains; input-output models; contagion risk; remote working;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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