This paper decomposes the interregional and international exports of Italy's regions into the various components of domestic and external value added, in order to evaluate both the extent of external demand stimulus in the production of regional value added and the involvement of each region in global value chains. As regards Italy, it is important to take into account the regional dimension because its territories differ substantially in terms of trade openness, development and production structure.
The contribution of foreign demand to regional production is greater in the Northern and Central regions than in those of the South, where the role of national demand is much more significant. Most regions show a significant participation in global value chains for a given amount of total exports. In relation to production, the latter are generally smaller in the South, which is also peripheral in the geography of international supply relationships.
Published in 2019 in: Politica Economica - Journal of Economic Policy, v. 35, 1, pp. 55-94