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Vertical specialisation in Europe: Evidence from the import content of exports

Author

Listed:
  • Emanuele Breda

    (Bank of Italy, Economics and International Relations.)

  • Rita Cappariello

    (Bank of Italy, Economics and International Relations.)

  • Roberta Zizza

    (Bank of Italy, Economics and International Relations.)

Abstract

We use input-output tables to estimate the import content (IC) of exports for several European countries, interpreting this as a measure of internationalisation. Between 1995 and 2000 the IC grew everywhere but in France; the transport equipment sector emerged as the most internationalised one. The change we detect for a set of EMU countries is remarkable when compared with previous estimates over the 20-year period between 1970 and 1990. Italy and Germany showed very different patterns, although both started from a very low level of IC. Italy experienced the weakest growth and Germany the most sizeable rise. We argue that Italian firms might have felt less pressured to transform their organisation due to the delayed effects of the 1992 and 1995 Lira crises.

Suggested Citation

  • Emanuele Breda & Rita Cappariello & Roberta Zizza, 2008. "Vertical specialisation in Europe: Evidence from the import content of exports," Temi di discussione (Economic working papers) 682, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_682_08
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    More about this item

    Keywords

    external trade; outsourcing; import content; input-output analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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