The paper examines the main determinants of service exports (other than travel, transport and processing under contract) of Italian non-financial corporations and insurance companies through the analysis of firm-level data collected for the compilation of the Italian balance of payments. The period considered, from 2013 to 2018, allows us to analyse the performance of exports in both an initial phase of low growth and, starting from 2016, a period of significant recovery.
The analysis confirms the important role played by the traditional trade variables (foreign demand and distance) and some firm-level characteristics (such as size and productivity). Moreover, the paper identifies a complementary relationship between service exports and foreign direct investment, suggesting that a significant component of Italy's international trade in services might include intra-group transactions, particularly during the recent recovery phase.
