Measuring patterns of specialization using trade in value added. The case of manufacturing in Italy

This article aims to contribute to the long-standing debate on the ‘anomaly’ of Italy’s specialization in manufacturing by providing fresh analysis based on new data. It offers: 1) a comprehensive survey of Italian comparative advantages measured in value-added terms and their evolution over time; 2) an international comparison of these advantages with Italy’s main competitors. Results show that the country’s traditional comparative advantages are substantially confirmed, a genuine capacity of the Italian domestic production factors to maintain added value in production with comparative advantage can be observed and new trends in terms of specialization and competitors are also highlighted, showing the influence of the international fragmentation of production on trade and specialization.