The effects of local systems on the international de-localisation of production.The case of made in Italy

The paper examines the fragmentation of production from the view-point of industrialised countries. From this perspective, the following questions are addressed: how do local systems evolve in the process of de-localisation of productions? Which are the short term and long term effects to be expected? Can we interpret these processes under the light of changing specialization of economic systems, necessarily associated with gains from trade? Evidence is provided on the internationalization of manufacturing activities that are commonly identified as “made in Italy”, with specific reference to the textile and footwear industries. The focus will be on the re-organization of economic activities at the level of local systems specialized in these industries, rather than on individual firms; on the whole set of international operations involved in this process, regardless of the legal form adopted (FDIs, import-export, cooperative agreements and licensing); and on how changes in the international organisation of production in these industries are associated with changes in the economic performances within these industries as well as in related sectors, such as service industries.