Export specialization and diversification

In previous articles, we showed the peculiar export specialization of Italian industries, which were high in number, but showcased poor complexity.

Here, thanks to the abundant availability of international trade data (about 5,000 HS6 products) in Prometeia MIO, we analyzed the relationship between export specialization and geographical export diversification.

Figure 1 highlights a very relevant evidence: within every sector, products from specialized firms reach a higher number of foreign markets than non-specialized counterparts (54 vs. 32), reflecting the importance of specialization as a competitiveness element.

Another relevant aspect, even if with some exceptions, is the average higher value (+43% in relative terms) of export in a single country for the products of specialization (Figure 2). In some sectors, Mechanical and Engineering in particular, specialization seems to be the only gateway to foreign markets.

Thanks to Prometeia MIO database and visualization tools, it is possible to examine firms’ competitive strength on international markets and have a data-driven compass for marketing campaigns.