International Fragmentation and Agglomeration: From Theory to Empirics

This paper deals with fragmentation both theoretically and empirically. Not only it presents a picture of the existing literature on the field but it also provides some basic hints for future investigation. It pays particular attention to the possible theoretical dichotomy between fragmentation and agglomeration, whilst supplying empirical evidence in support of their coexistence. Moreover, the paper focuses on the linkages between fragmentation and trade, with an emphasis on vertical intra-industry trade in intermediates. Eventually, the contribution stresses that much more attention should be paid on how fragmentation shapes the role of industrial districts within the international organisation of production. Further investigation from different strands of literature (GVCs and GPNs) is needed to shed some light on the role of local production systems in the global architecture of manufactures.Fragmentation, agglomeration, intra-industry trade, Global Value Chains, Global Production Networks

Vertical Specialisation and Regional Trade Integration. A Study on Italy and Northern African Countries

This paper uses a multistage approach to investigate the role of Italy in the Northern African countries, both in terms of trade and investment. In particular, we show that Italian import flows for two typically Made in Italy industries, namely textile and clothing on one hand, and leather and footwear on the other hand, are strongly related not only to export flows of the same sector, but also to a set of variables capturing features of the Italian and the foreign country. In this way, we supply a first result supporting the hypothesis of an international fragmentation of production. To offer this outcome additional strength, we endow the present contribution with information on the attractiveness of the Northern African countries, looking at the volume of inward FDI flows and stocks, but with no industry disaggregation, due to data unavailability. Although we start from a global perspective, we rapidly shift to consider only the Italian investments in the area, with a breakdown by outward region. Thanks to the availability of a detailed dataset made available by the Bank of Italy, we are able to provide further evidence on the Italian internationalisation in the North of Africa. Indeed, our second result highlights the remarkable heterogeneity across countries and the emergence of the major role played by Tunisia.Northern Africa, Italian regions, Made in Italy, FDI, fragmentation, Global Value Chains

A note on the estimation of import trade demand functions

This paper compares six alternative methods of computing the import demand function. We use a sample of 33 countries from 1995:1 to 2016:3 and brand new information on import contents made available by WIOD. Preferred models take into account the separate effects of each final demand component. Contrary to some recent studies, we observe that private expenditure is the main driver of import variations

Trade credit in China: evidence from unlisted companies

This thesis analyses the use of trade credit in China, relying on balance sheet information for a large sample of unlisted companies over the period 2004-2007. We first investigate which factors drive the extension and the obtainment of trade credit. Private companies extend less trade credit the higher the amount of inventories they hold and the lower the share of capital owned by foreign agents. Consistent with the Triangle Debt Dilemma, state-owned enterprises and collective enterprises are more likely to obtain trade credit if they have previously extended it. We then examine the effect of net trade credit, measured as accounts payable minus accounts receivable, on the capital structure. We show that net trade credit is positively associated with total and short-term debt. This relationship holds in those provinces with high levels of marketization and it is valid for private and foreign firms only if located in the most developed provinces. Finally, we analyze how accounts payable and accounts receivable affect the extensive margin of exports. Accounts payable influence the probability of exporting through an inverted U-shaped relationship for all ownership types. However, the nonlinearity holds also for accounts receivable only for private companies

Train-feeder modes in Italy. Is there a role for active mobility?

The transport mode used to reach a train station is an important determinant of the urban traf\ufb01c and rail transport attractiveness. In this paper, we have investigated train-feeder mode choice on the basis of 185 in-terviews with Italian train users living in cities of different size. We analyzed their current choice and their stated choices under hypothetical scenarios using various discrete choice model speci\ufb01cations. Their current train- feeder mode choice is mainly car-based: 63.2% of the respondents use the car, as either drivers or passengers. The active modes cycling and walking are chosen by 18.4% and 9.7% of the respondents, respectively; the remaining using either the bus or the scooter. Our estimates con\ufb01rm that travel time and travel cost play a relevant role with two covariates, commuter and gender, explaining the large heterogeneity of the active mobility travel time variable. However, the performed scenario analysis suggests that, in many instances, it is extremely dif\ufb01cult to alter the existing train-feeder mode choice in favor of the active modes and that promoting active mobility in Italy requires a coordinated effort at many levels, including territorial planning, infrastructural investment and traf\ufb01c regulations

Are air travellers willing to pay for reducing or offsetting carbon emissions? Evidence from Italy

The aviation industry is one of the fastest-growing sectors in producing carbon emissions. In order to reduce its carbon footprint and to respond to the increasing number of people concerned about the impact caused by air transport on climate change, the International Civil Aviation Organization (ICAO) has recently passed the \u201ccarbon neutral growth from 2020\u201d resolution requiring that the global net CO2 emissions from international aviation do not exceed the 2019\u20132020 levels. Airlines, however, can act beyond their obligations under the ICAO resolution investing in projects aimed at reducing or offsetting all the emissions produced not only by their international flights but also by their domestic flights. The aim of this paper is to test whether Italian air travellers would be willing to donate a contribution to finance these projects and whether the willingness to pay depends on the projects\u2019 type and on the projects\u2019 effectiveness. To this aim we performed a stated-choice experiment involving a sample of 1228 Italians who travelled by plane at least once in the last 3 years. We find that their willingness to pay ranges from \u20ac12 to \u20ac38 per ton and from \u20ac14 to \u20ac66 per flight. The description of the project type to be financed via the passengers\u2019 donations is one of the most important factors influencing their willingness to pay. Other key factors are the quantity of CO2 reduced or offset via the project and the respondents\u2019 gender, education degree, occupational status, environmental consciousness and travel habits. Our results are useful for airlines to design the donation proposals and improve the corporate image and for policy makers to support air travellers\u2019 environmental conscious behaviour and airlines\u2019 environmental sustainable strategies

Barriers to the adoption of electric cars: Evidence from an Italian survey

Italy has a very low level of uptake of electric cars (ECs), equal to 0.6% for the year 2019, despite significant efforts put in place by policy makers to stimulate their use. This paper investigates the barriers to wider EC diffusion via a survey administered in 2019 to a representative sample (N = 870) of the Italian population. We discuss and rank the barriers, aggregate them via principal component analysis (PCA) on the basis of the polychoric correlation matrix, perform a cluster analysis and analyse the socio-economic determinants of the respondents. The findings of this paper suggest a series of improvements that could be made by various actors. To overcome the financial barriers to EC uptake, Italian policy makers should reinforce incentives at the national and local levels and car manufacturers should bring to the market cheaper ECs belonging to the A and B segments. The charging-related barriers require investments on fast charging stations along the main toll highways and a new regulation regarding multi-house dwellings. Finally, reliable and complete information is needed to enhance knowledge about the technological and environmental pros and cons of ECs

Does electric car knowledge influence car choice? Evidence from a hybrid choice model

We present the results of a stated preference study undertaken in Italy in 2017 on individuals\u2019 preferences between an electric car (EC) and a petrol car, with the purpose of assessing the impact of the latent variable EC knowledge on purchasing decisions. We estimate a multinomial, a mixed and two hybrid mixed logit models, with the interaction between EC knowledge, car attributes and additional exogenous covariates. We use three measurement equations to estimate the self-assessed car knowledge, assessed EC knowledge and EC driving experience. We report three main findings. First, the inclusion of EC knowledge improves our capability to explain car choice. Second, the degree of EC knowledge does not change the negative perception respondents have, ceteris paribus, on ECs. Third, the level of EC knowledge influences the importance placed on the attributes of the choice model. Specifically, a higher level of EC knowledge is associated with a lower concern with fast charging station density. Our results are useful for car manufacturers who wish to improve their marketing strategies through tailored advertising efforts, and for policy makers who wish to implement educational campaigns as a means to foster EC uptake

Drivers\u2019 preferences for electric cars in Italy. Evidence from a country with limited but growing electric car uptake

So far, Italy has shown a much lower electric vehicle (EV) adoption rate than other European countries. In an effort to understand the motivations for the limited but growing EV uptake, this paper focuses on Italian drivers\u2019 preferences resulting from a stated preference survey carried out in October-December 2018. This paper complements the international literature and updates previous Italian surveys administered by the authors in the past years (Valeri and Danielis, 2015; Giansoldati et al., 2018). The econometric analysis of the stated choices confirms that the vehicle attributes such as purchase price, fuel economy, and driving range play a very relevant role. The time spent to charge the vehicle affects negatively the respondents\u2019 utility, while the fast charging network density is not yet perceived as significant or carries a counter-intuitive sign. On the contrary, the possibility to park EVs for free, even for a limited time, in the city central areas is positively valued by the respondents. Comparing our estimates with previous Italian studies, in particular with Giansoldati et al. (2018) who uses a similar questionnaire but on an earlier and more limited sample, there are hints of a change in the perception of the Italian drivers towards EVs. A noticeable difference is the value of the EV alternative specific constant. Giansoldati et al. (2018) find a negative value while this study finds a positive one. A second finding is that the willingness to pay for an additional driving range kilometre is lower than that previously found, indicating that Italian drivers are becoming more confident on EV driving range. Scenario analysis indicates that in Italy financial incentives would have a larger impact on the probability of buying an EV than technological improvements

Export starters and exiters: Do innovation and finance matter?

Using European Central Bank restricted-access biannual data on European small- and medium-sized enterprises (SMEs) over the period 2014\u20132017, we analyze the impact that innovation, financial constraints, and an efficient regulatory environment exert on the probability of switching from the status of nonexporter to exporter and vice versa. We find that either the use of finance for innovation or undertaking product innovation increases the likelihood of starting to export and lowers the likelihood of stopping exporting. Although SMEs\u2019 financial frictions are negligible for foreign market entry, they matter for increasing the probability of exiting. We also document that a friendly regulatory environment is conducive to start\u2014but not to stop\u2014exporting. Our findings provide empirical support for the recent European Commission policies on both SMEs\u2019 internationalization and access to finance