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

Giammetti, Raffaele; Papi, Luca; Teobaldelli, Désirée; Ticchi, Davide

doi:10.1007/s40812-020-00164-9

Cited by 50 publications

(46 citation statements)

References 16 publications

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“…Lockdown measures had a great impact on the level of activity. Giammetti et al ( 2020 ) estimate that the lockdown measures had an impact of approximately 52% of circulating value added. These findings are in line with those performed including a richer pool of countries, that estimate a reduction between 30 and 50% of the level of activity during the first lockdown (OECD 2020a ).…”

Section: Literature Review and Discussionmentioning

confidence: 99%

Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors

Villani

Fana

2020

J. Ind. Bus. Econ.

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The Covid-19 crisis has revamped the discussion about the redefinition of GVC. This paper contributes to the debate, analysing the productive relationships between European countries in four key manufacturing activities. In particular, the paper addresses two objectives. First, it maps the degree of productive integration in Europe, focusing on the generation of employment in the production of exported intermediate inputs and final goods. Second, it provides a preliminary assessment of the potential impact on employment that the current economic crisis will have on some manufacturing activities across Europe. The analysis is realised employing the concept of vertically integrated labour (Pasinetti 1973) which allows to account for the employment directly and indirectly involved in the production of final goods. The estimations are derived from Multi-Regional Input–Output tables to map the supply chain and to differentiate between the employment involved in the production of exported intermediate inputs and final goods. The results show that most of the employment involved in the production of final output of the activities studied in the paper is linked to international trade. Although Europe shows a high degree of productive links, there are important differences in the modality of insertion in the productive structure of European countries. Moreover, the impact on the level of employment due to the current economic crisis can be significant, affecting more than 1.3 million of people in Europe. These results are relevant to policy makers, who should consider carefully the high degree of linkages of the European economies when designing industrial policies and measure of support to the economy.

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Section: Literature Review and Discussionmentioning

confidence: 99%

Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors

Villani

Fana

2020

J. Ind. Bus. Econ.

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“… 2019 ; Giammetti et al. 2020 ), it is reasonable to work with the gross input–output tables. In this study, we will use the gross tables everywhere.…”

Section: Methodsmentioning

confidence: 99%

“…2017 ), identifying the central sectors of an economy (Giammetti et al. 2020 ), and examination of the sectoral effects of disasters (Dietzenbacher and Miller 2015 ). The application of network theory methods complements these standard models and more complex analysis can be performed by mixing these techniques (Amador and Cabral 2017 ).…”

Section: Introductionmentioning

confidence: 99%

The strength of domestic production networks: an economic application of the Finn cycling index

2021

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There has been an increasing interest in analyzing the structure of domestic and global supply chains/networks in the past decade. Concerns about potential (systemic) risks resulting from overdependence on global supply networks have been magnified during the lockdowns triggered by the COVID-19 pandemic in the last year. Strengthening local and/or domestic networks may be an adequate approach to overcome the severe economic implications of this overdependence, but it also rises the question of how one can measure the strength of domestic supply/production networks and design an appropriate structure. The objective of this paper is to propose a method for measurement and to provide a first-cut analysis with this method on a sample of economies. Building on ecological network analysis, we borrow the Finn cycling index from its toolbox and show a ranking of countries with respect to the strength of their domestic production networks based on this index. The results suggest that the countries are very heterogeneous both in terms of the level of cycling index and its sectoral decomposition. Using panel-econometric techniques, we point out the role of the openness and structural asymmetry in shaping this strength, also controlling for other macroeconomic characteristics of the economies. The estimates reveal that openness has a negative, while asymmetry has a positive effect on this index, but other country-specific characteristics also play a role in shaping the systemic operation of national economies as measured by the Finn cycling index.

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“…No aggregate model can unveil this important effect. Moreover, many recent studies (including the above-mentioned two and Giammetti et al, 2020), show that input-output relations amplify the macroeconomic effect of a lockdown in some industries via both supply and demand chains. The connections between final demand and gross demand for any particular commodity, the inverse Leontief matrix, the direct and indirect effects of a change in consumption demand on outputs and employment in the various industries, which feature so prominently in the SMT book and are so familiar in Sraffian models, are becoming an essential ingredient (rather than an aspect of detail) of macroeconomic modelling.…”

Section: By Way Of Conclusionmentioning

confidence: 99%

Symposium on Yoshinori Shiozawa, Masashi Morioka and Kazuhisa Taniguchi (2019), Microfoundations of evolutionary economics, Tokyo: Springer Japan

et al. 2021

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The question of how prices and quantities interact and decisions and activities of large numbers of agents are coordinated in market economies has been a major theme in systematic economic investigations since their very inception at the time of French, British and Italian scholars in the seventeenth and eighteenth century. Adam Smith's analysis of the problem in The Wealth of Nations of 1776 is a locus classicus of the literature under consideration. Time and again, the definitive answer to the question has been proclaimed, from John Stuart Mill in his Principles of Political Economy in 1848 to Kenneth Arrow and Frank Hahn in their General Competitive Analysis in 1971. However, time and again, after careful scrutiny, the solutions put forward were found wanting for various reasons, from a lack of logical consistency to a lack of realism. Nevertheless, many economists accepted neoclassical general equilibrium theory of the Arrow-Debreu type as | 3 MISCELLANEOUS a coherent and convincing answer to the problem at hand. Critics of the theory and advocates of alternative approaches to economics either disregarded the problem of the price-quantity nexus altogether, dealt with it in a cavalier way or took diluted forms of the neoclassical theory to take care of it in an otherwise fundamentally different analytical framework. The resulting incomplete theories or attempted crossbreeding of essentially incompatible theories implied a competitive disadvantage in the market of ideas compared with general equilibrium theory, and accounts for the continuing dominance of the latter in economic theorising. This is the view expressed in the book by Yoshinori Shiozawa, Masashi Morioka and Kazuhisa Taniguchi, Microfoundations of Evolutionary Economics. They argue that this unsatisfactory situation, unsatisfactory to non-neoclassical economists to which they count themselves, is over because solid and realistic 'microfoundations of evolutionary economics' are available now. They stress that these are 'as fine and logically sure as Arrow and Debreu's model of competitive equilibrium' (p. vii). Their work, they claim, does not only offer the long-awaited breakthrough in this important field in economics, it also allows for a unification of several alternative theoretical currents in economics under a single umbrella. Although their focus of attention is on Evolutionary Economics, they insist that their findings provide support also for the Keynesian theory of effective demand and Post-Keynesian economics (PKE) (see p. vii) and the Classical approach to the theory of value and distribution as reformulated by Piero Sraffa in Production of Commodities by Means of Commodities in 1960. In fact, the authors emphasize the close relationship of their theory with Sraffa's: 'The new theory stands basically on the same theory and formulation begun by Piero Sraffa'; they add that it is not limited to the study of long-period positions of the economic system, but can analyse both 'short-and medium-period questions' (p. 133). 1 Such auspicious p...

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

Cited by 50 publications

References 16 publications

Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors

Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors

The strength of domestic production networks: an economic application of the Finn cycling index

Symposium on Yoshinori Shiozawa, Masashi Morioka and Kazuhisa Taniguchi (2019), Microfoundations of evolutionary economics, Tokyo: Springer Japan

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