OECD/WTO TRADE IN VALUE ADDED (TIVA) INDICATORS
ITALY
Italy's domestic value added content of its exports was 80% in 2009 about 5 percentage points (pp)_above
the OECD average and slightly higher than the share in 1995, making Italy somewhat of an outlier compared
to most other countries whose domestic content fell over the period (Fig. 1). This may partly reflect the recent
crisis, as Italy's foreign content of its exports increased by 5 pp between 1995 and 2005, but even this increase
was relatively low in comparison to other countries, indicating potential barriers to integration into global
value chains.
Figure 1: Domestic value added content of gross exports, %
(EXGRDVA_EX)
100%
2009
1995
80%
60%
40%
20%
LUX
SVK
IRL
KOR
HUN
CZE
ISL
NLD
BEL
SVN
FIN
SWE
EST
CHN
PRT
DNK
AUT
ISR
MEX
CHE
POL
DEU
FRA
GRC
IND
TUR
ESP
ITA
CAN
CHL
NZL
GBR
ZAF
NOR
JPN
IDN
AUS
USA
BRA
RUS
0%
Looking at individual industries reveals the impact of the crisis on Italy's integration into global value
chains more clearly. Unlike most other countries the foreign value added content of its exports fell throughout
the manufacturing sector between 1995 and 2009, except for Basic metals and Chemicals and minerals where
the shares were slightly higher, and remained comparable with other large European countries (Fig. 2).
Figure 2: Foreign value added content of gross exports, by industry, %
Total
Other services
Business
services
Finance &
insurance
Transport &
telecoms
Wholesale &
retail
Other
manufactures
Transport
equipment
Electrical
equipment
Machinery
1995
Basic metals
Chemicals &
minerals
Wood & paper
Textiles &
apparel
Food products
Mining
35%
30%
25%
20%
15%
10%
5%
0%
Agriculture
2009
(EXGR_FVASH)
Interestingly, unlike the figures for the foreign content of exports (Fig. 2) shares of intermediate imports
used to produce exports showed relatively little change over the period 1995-2009, suggesting that exports of
goods produced by firms with a high degree of integration within global value chains were more affected by
the crisis than firms with domestic supply chains. Only three products Basic metals, Mining and Other
manufactures saw their shares rise over the period (Fig. 3).
Figure 3: Share of imported intermediate inputs that are exported, by import category, % (REI)
2009
1995
60%
40%
Total
Other services
Business
services
Finance &
insurance
Transport &
telecoms
Wholesale &
retail
Utilities
Other
manufactures
Transport
equipment
Electrical
equipment
Machinery
Basic metals
Chemicals &
minerals
Wood & paper
Textiles &
apparel
Food products
Mining
0%
Agriculture
20%
The contribution of other European economies to Italian Transport equipment exports declined 5 pp in
2009 relative to 1995, with the share provided by North America also declining by 1 pp (Fig. 4). East and
S.E. Asia and other regions fared better however with their overall contribution rising by nearly 2 pp,
although a significant part of this reflects mineral products, such as the value added embodied in crude oil,
and so in large part, possible price effects.
Figure 4: Foreign value added in Transport equipment, by originating region and industry, %
East and S.E. Asia
Europe
North America
Other regions
South America
5.0
4.0
3.0
2.0
1.0
0.0
1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009
Mining
Chemicals
& minerals
Basic
metals
Electrical Transport Wholesale Transport & Finance &
equipment equipment and retail telecoms insurance
Business
services
Other
[Figure 4 illustrates how the TiVA infrastructure can be used to focus on the origins of foreign value added in the
output of a particular sector in a particular country].
Germany remained Italy's main export market in 2009 both in value added (11%) and gross (13%)
export terms (Fig. 5). But in value added terms the United States was almost as important an export market,
reflecting Italian value added embodied in the exports of other, notably European, countries to the United
States. Germany remained Italy's main source of imports in value added terms but with a slightly lower share
compared to gross terms, partly reflecting German value added embodied in Italian exports. The share of
imports from the United States was 2 pp higher in value added terms compared to gross measures.
Figure 5a: Exports, partner shares, in gross and value added terms (as a % of total), 2009
Gross exports (EXGRSH)
15.0
Domestic value added in foreign final demand (FDDVASH)
10.0
5.0
0.0
DEU
USA
FRA
GBR
ESP
CHN
CHE
RUS
JPN
GRC
POL
BEL
AUT
TUR
NLD
Figure 5b: Imports, partner shares, in gross and value added terms (as a % of total), 2009
Gross imports (IMGRSH)
Foreign value added in domestic final demand (FDFVASH)
20.0
15.0
10.0
5.0
0.0
DEU
FRA
USA
CHN
GBR
RUS
ESP
NLD
CHE
BEL
POL
JPN
AUT
IRL
TUR
Total Italian exports and imports in value added terms were about one-fifth smaller than gross
measures, although the overall trade balance is identical in value added and gross terms. These smaller flows
are the main drivers for changes in bilateral trade balances, characterised as smaller bilateral surpluses and
deficits with partners (Fig. 6).
Figure 6: Bilateral trade balances, USD million, 2009
2009 Gross Trade surplus/deficit (TSGR)
2009 Value Added surplus/deficit (TSVAFD)
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
-20,000
USA
FRA
GRC
GBR
AUS
CHE
BEL
IRL
RUS
CHN
DEU
NLD
In value added terms nearly half of Italy's exports in 2009 reflected services, the same as the OECD
average (48%) and 5 pp higher than the share in 1995 (Fig. 7). The contribution of services rose in all
industries, particularly in the Textiles and apparel and Transport equipment sectors, where the services
content increased by around 10 pp between 1995 and 2009 (Fig. 8). Over 40% of the total value of exports in
these sectors reflects services content.
Figure 7: Services content of gross exports, 2009
90.0
Domestic content
80.0
Foreign content
(EXGR_*_SV; SERV_VAGR)
Total 1995
70.0
60.0
50.0
40.0
30.0
20.0
10.0
Foreign service contents
LUX
GRC
ISL
IRL
GBR
BEL
ESP
DNK
FIN
IND
PRT
SWE
ISR
Figure 8: Services content of gross exports, by industry, 2009
AUT
EST
FRA
CHE
USA
ITA
DEU
NZL
TUR
SVN
NLD
POL
JPN
HUN
CZE
AUS
SVK
ZAF
KOR
BRA
CAN
RUS
NOR
CHL
MEX
IDN
CHN
0.0
(EXGR_*_SV; SERV_VAGR)
Domestic service contents
1995 Total
50%
40%
30%
20%
Other
manufactures
Transport
equipment
Electrical
equipment
Machinery
Basic metals
Chemicals &
minerals
Wood & paper
Textiles & apparel
Mining
Agriculture
0%
Food products
10%
The information included in this note is based on the May 2013 release of the Trade in Value added (TiVA)
database. The data can be accessed from www.oecd.org/trade/valueadded. For further information, please
contact us ([email protected]).