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International division of labour and countries’ competitiveness: the case of Italy and Germany

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  • Garbellini, Nadia

Abstract

The paper is going to use the WIOD to analyse the structure, extent and evolution of production processes outsourcing in Italy and Germany from 1995 to 2011 by means of global vertically integrated sectors, in order to single out and compare the different sources of gains/losses in competitiveness. Secondly, global vertically integrated sectors are going to be employed to get a measure of labour productivity changes in the two countries. By comparing the trends of these two sets of indicators, it is possible to shed light on the evolution of international competitiveness in the two countries, to assess the extent to which competitiveness gains/losses are associated to actual productivity increases/decreases and to what extent they are simply due to a different geographical allocation of production stages.

Suggested Citation

  • Garbellini, Nadia, 2014. "International division of labour and countries’ competitiveness: the case of Italy and Germany," MPRA Paper 56542, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56542
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    File URL: https://mpra.ub.uni-muenchen.de/59125/1/MPRA_paper_59125.pdf
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    References listed on IDEAS

    as
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    2. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
    3. Meng, Bo & Inomata, Satoshi, 2009. "Production Networks and Spatial Economic Interdependence: An International Input-Output Analysis of the Asia-Pacific Region," IDE Discussion Papers 185, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Nadia Garbellini & Ariel Luis Wirkierman, 2014. "Productivity Accounting in Vertically (Hyper-)integrated Terms: Bridging the Gap between Theory and Empirics," Metroeconomica, Wiley Blackwell, vol. 65(1), pages 154-190, February.
    5. Emanuela Breda & Rita Cappariello, 2012. "A tale of two bazaar economies: an input-output analysis of Germany and Italy," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2012(2), pages 111-137.
    6. Meng, Bo & Yamano, Norihiko & Webb, Colin, 2011. "Application of factor decomposition techniques to vertical specialisation measurements," IDE Discussion Papers 276, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    14. Nadia Garbellini & Enrico Marelli & Ariel Luis Wirkierman, 2014. "Domestic demand and global production in the Eurozone: A multi-regional input-output assessment of the global crisis," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(3), pages 336-364, May.
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    Cited by:

    1. Grodzicki, Maciej J. & Skrzypek, Jurand, 2020. "Cost-competitiveness and structural change in value chains – vertically-integrated analysis of the European automotive sector," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 276-287.
    2. Maria Savona, 2018. "Industrial policy for a Europeanindustrial renaissance. A few reflections," SPRU Working Paper Series 2018-07, SPRU - Science Policy Research Unit, University of Sussex Business School.
    3. Marta Fana & Davide Villani, 2021. "The Automotive Supply Chain in Europe: An Input-Output Analysis of Value Added and Employment Composition," JRC Working Papers on Labour, Education and Technology 2021-01, Joint Research Centre.
    4. Fana, Marta & Villani, Davide, 2022. "Decomposing the Automotive Supply Chain: Employment, Value Added and Occupational Structure," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 407-419.

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    More about this item

    Keywords

    Labour productivity; International fragmentation of production; offshoring;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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