Three Decades of Italian Comparative Advantages

Abstract

This paper explores the structure of Italian revealed comparative advantages (RCA), focusing on the export structure itself, on its changes over time and on its degree of persistence. The analysis is developed with the use of visual statistical tools and non-parametric statistical techniques that allow to estimate the empirical distribution of the Balassa (1965) index, and to track its dynamics during three decades, from the 1970s to the present. The main results of the analysis are that the structure of Italian RCA is highly persistent, but is changing; the structure is very different when it is examined at a macro-regional level; the distribution is not so similar to the one of the new industrialised countries, when it is examined at a high level of sectoral disaggregation. Finally, the persistence in the pattern of RCA appears to be positively related to the presence of industrial districts in export data disaggregated at the provincial level. Copyright Blackwell Publishing Ltd 2005.

Persistence versus Change in the International Specialization Pattern of Italy: How Much Does the ‘District Effect’ Matter?

“…As ONIDA (1999) forcibly points out, there is general agreement that the trade structure in Italy is atypical compared with the other high-income Organisation for Economic Co-operation and Development (OECD) countries, in terms of its persistent specialization in traditional low-skilled labour-intensive sectors such as textiles, apparel, leather products, footwear, and furniture. This persistence has been identified in a number of empirical studies based on various data sets, with different sectoral classification and level of aggregation, over varying time spans and using different statistical methodologies (BUGAMELLI, 2001 INTERNATIO-NALES (CEPII), 1998;CHIARLONE, 2001;CIPOL-LONE, 1999;DE BENEDICTIS, 2005;DI MAIO and TAMAGNI, 2008;HELG et al, 2000). Two major concerns about the anomaly of the Italian model of specialization have been expressed.…”

“…DE BENEDICTIS (2005) makes the point that since the mid-1950s Italy has embarked on a process of capital accumulation and is no longer a labour-abundant country; therefore, according to the Heckscher-Ohlin theorem, it should not be specialized in labour-intensive sectors. However, in terms of its human capital endowment, Italy differs with respect to the other highincome OECD countries.…”

“…The debate on the structure of Italian exports, its evolution, causes, and implications over time has generated a vast empirical literature, which was recently reviewed by DE BENEDICTIS (2005). As ONIDA (1999) forcibly points out, there is general agreement that the trade structure in Italy is atypical compared with the other high-income Organisation for Economic Co-operation and Development (OECD) countries, in terms of its persistent specialization in traditional low-skilled labour-intensive sectors such as textiles, apparel, leather products, footwear, and furniture.…”

Analysis on the Trade Comparative Advantage of Manufacturing Industry in Guangzhou to the Belt and Road Area: Based on the RSCA Index

“…In order to provide a clearer analysis of the comparative advantages of manufacturing industries in Guangzhou to the 65 countries along theBelt and Road area 2 , we need to conduct a horizontal comparative analysis. We make X iw and X tw in the formula…”

“…When RCA index of a specific trade sector is above 1, it indicates that the sector in this area has comparative advantage, otherwise it has comparative disadvantage. However, Benedictis [2] found in his further research that, the RCA index has the defect of asymmetric on measuring comparative advantage. When the index value is between 0-1, it is considered as of comparative disadvantage, while the value range is [1,+∞] ， it is considered as of comparative advantage.The judgment value ofthe two rangesis not symmetrical, which makes the measured indicators distribution skew and directly affects the intuitive judgment on the comparative advantages of various industrial sectors.…”