Italy’s regional divide: does it matter also for exports?

This Country Focus analyses a not frequently studied dimension of the large and persistent regional economic divide in Italy this divide: the performance of exports and their composition.

The regional divide in Italy is large also as regards export capability. Besides being much less open than the Centre-North, the South's economy exports a more limited number of products. However some weaknesses are common to the two areas. While the South has considerable scope for catching up with the rest of the country also in export capability, the need to enhance productivity growth (and hence competitiveness) and, in a longer term perspective, re-orient the productive structure towards more innovative sectors is a key challenge for Italy as a whole.

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