MILAN, Apr 14 (Class Editori) – It's not all about trades. The BRI Initiative can contribute to place Italy inside international production networks. During the last 20 year, Italian industries have been employing an internationalization model sporting the same main qualitative features, says the latest CER reports directed by Vladimiro Giacché and focused on the New Silk Road’s impact on international trades and opportunities.
The document was brought forward during the CNEL (the Italian National Council for Economics and Labour) held on Friday 12th, April, which is responsible, together with Confetra, for launching a series of audits aimed at simplifying logistics. The report stated that "the most relevant comparative gains remain gathered in the industrial machinery sector and in that of consumer's goods for personal and home care – which are Made in Italy specializations".
The impact hadn't been as prominent as before. During the last few years there had been new sectors coming forward – like the pharmaceutical one – while world demand trends, in particular across the new middle class in emerging economies, allowed Italian exports to gain back some leverage on its aggregate market share. "In some sectors, like in the textile, clothing, shoes, an even pharmaceutical ones, when taken at their net value, exports tend to be far more specialized than the imports. This could be interpreted as a sign that exports' comparative advantages are supported by intermediate goods imports, which companies perform by taking part in international production networks," explained the report written by Stefano Fantacone, Lelio Iapadre, Ilaria Salvati.
Globalization is facing some difficulties, said Iapadre. "In a number of regions, in particular in the major Asian countries, exports are experiencing a loss in their market presence, as they have been growing less than GDP since 2012. This trend could be traced back to a conversion process which has been interesting national production in regard to internal demand – often because of industrial policies aimed at completing the productive chain, developing the local production of intermediate goods, and reducing the dependence from imports," stated the document.
The BRI, launched in 2013 as a massive investment plan for developing infrastructures, seems to come as an answer to this slow-down, noted Iapadre. Even if Beijing’s goals are three: lowering energy import costs, balancing internal imbalances, and absorbing production capacity excesses.
And Italy is fully involved in this process. The growth slow-down has been particularly important. Italian share on total European GDP is going down, and so is the country’s income per person, dropping lower that EU averages. "The biggest divide, in particular if we consider the implications affecting the country’s growth potential, becomes clear when we look at a country’s capacity to attract foreign investments".
Exception made for 2017, Italian goods and services exports in the last few years have been growing at an evidently smaller rate than most other participants to the Eurozone. "If we are to exclude services and focus on goods trades, we can get slightly better results. In terms of current prices, Italian exports’ share in the world market went downhill during the first global crisis to recover some points during 2013. Yet it lost ground again last year".
Italian participation in the BRI can help the country build connections in the Middle East, in Africa and in Asia, supported by the infrastructure development aimed at boosting trades – which are, at the moment, scoring well below their potential levels.
(Source:Class Editori)
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