Cesare Imbriani

Innovation, quality and exports: The case of Italian SMEs

We test the hypothesis that innovating and targeting the upper-quality segment of markets increases Italian small and medium enterprises probability to export, providing empirical evidence that supports it. We observed a positive-quality effect and a strong impact of non-technological innovations over future exports. We also observed that larger and older firms operating in traditional sectors are more likely to export. The most interesting results came from the introduction of interaction terms. We found evidence of a ‘super-additive effects’, which delineate synergic linkages between product innovation activities and quality strategy.

Analysis of the Italian Banking System Efficiency: A Stochastic Frontier Approach

The paper provides an analysis of some features of the Italian banking system during the decade 1998 – 2008. In particular, it focuses on the efficiency of Italian banks—in terms of parametric cost and profit functions—taking into account the dualistic structure which characterizes the Italian economy, the bank size, and the juridical form. During this period the Italian banking system has experienced a higher level of competition and significant ownership changes; these phenomena had a relevant impact on the performance of all banks. In particular, we found a reduction of differences in the efficiency between Northern and Southern banks. In addition, small banks exhibit a higher level of efficiency compared with the large ones. Finally, we observe that Mutual Banks improved in a significant way their performance compared with the banks organized as limited companies and cooperative. These results confirm the ability of local small Mutual Banks to effectively and successfully compete in the markets characterized by global operators. The reason for the continuing vitality of local banks is due to the fact that they offer a different product from large global banks and attract customers, specially small local firms, which external global banks would find difficult to serve.

Innovation and Exporting: Does Quality Matter?

We study the effect of innovation on a firm’s propensity to export, developing a simple model where heterogeneous firms operate in a monopolistically competitive market and set their prices as a markup above the marginal cost. The key proposition of our model is that firms that invest in better quality products are more likely to export. We test it using Italian firms’ data. Econometric results suggest that innovation, defined as quality upgrading, has a significant effect on the firms’ propensity to export; and, for those who are already exporting, innovation—defined as new products—has a significant effect on a firm’s turnover.

Sustainability Issues in the Process of European Integration

The fiscal requirement emerging from Maastricht is that governments should have a substainable financial position. A limit of 60% for the debt/GNP ratio and of 3% for the total deficit/GNP ratio is considered consistent with this requirement. The concept of sustainability appears to be the only common objective for fiscal policy. As pointed out, by Bean [5] 1 these rules are not entirely satisfactory. A ‘reasonable’ upper limit for the debt/GNP ratio2 is, however, intended to prevent debt monetization “a la” Sargent and Wallace [29] or confidence crises’ of the kind studied by Giavazzi and Pagano [19] .

EMS Membership Under Real Exchange Rate Appreciation: Recent Trends in Italian Trade

1. — During the ten years of its existence the European Monetary System has survived the ups and downs of the business cycle, which, within the period, was also characterized by substantial changes in the price of oil and consistent imbalances in the system of international payments.