Value chains and the pandemic: findings on Italian firms

The article entitled ‘Le catene del valore e la pandemia: evidenze sulle imprese italiane’, written by researchers from the Bank of Italy, is now online.

The spread of global value chains began to slow down about ten years ago because there was less room for another reduction in tariff barriers or for a further increase in the fragmentation of production. The pandemic shock has revived the debate on the possibility that the repatriation of production previously localized abroad (‘reshoring’) has been contributing to a broader deglobalization process. The results of the Bank of Italy’s ‘Business Outlook Survey of Industrial and Service Firms’, carried out in September and October 2020, suggest that no widespread reshoring is under way in Italy, in line with the evidence for other advanced economies. Furthermore, the findings show that internationalized firms seem to have dealt better with the pandemic crisis than those who only operate in the domestic market.