Product-level value chains from firm data: mapping trophic levels into economic growth

Fuente: arXiv
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Main Authors: Fessina, Massimiliano, Tacchella, Andrea, Zaccaria, Andrea
Format: Preprint
Published: 2025
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author Fessina, Massimiliano
Tacchella, Andrea
Zaccaria, Andrea
author_facet Fessina, Massimiliano
Tacchella, Andrea
Zaccaria, Andrea
contents We reconstruct a product-level input-output network based on firm-level import-export data of Italian firms. We show that the network has a statistically significant, yet nuanced trophic structure, which is evident at the product level but is lost when the classification is coarse-grained. This detailed value chain allows us to characterize the trophic distance between inputs and outputs of single firms, and to derive a coherent picture at the sector level, finding that sectors such as weapons and vehicles are the ones with the largest increase in downstreamness between their inputs and their outputs. Our measure of downstreamness at the product level can be used to derive country-level indicators that characterize industrial strategies and capabilities and act as predictors of economic growth. With respect to the standard input/output analysis, we show that the fine-grained structure is qualitatively different from what can be observed using sector-level data. We finally prove that, even if we leverage exclusively data from Italian firms, the metrics that we derive are predictive at the country level and capture a significant description of the input-output relations of global value chains.
format Preprint
id arxiv_https___arxiv_org_abs_2505_01133
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Product-level value chains from firm data: mapping trophic levels into economic growth
Fessina, Massimiliano
Tacchella, Andrea
Zaccaria, Andrea
Physics and Society
General Economics
Economics
We reconstruct a product-level input-output network based on firm-level import-export data of Italian firms. We show that the network has a statistically significant, yet nuanced trophic structure, which is evident at the product level but is lost when the classification is coarse-grained. This detailed value chain allows us to characterize the trophic distance between inputs and outputs of single firms, and to derive a coherent picture at the sector level, finding that sectors such as weapons and vehicles are the ones with the largest increase in downstreamness between their inputs and their outputs. Our measure of downstreamness at the product level can be used to derive country-level indicators that characterize industrial strategies and capabilities and act as predictors of economic growth. With respect to the standard input/output analysis, we show that the fine-grained structure is qualitatively different from what can be observed using sector-level data. We finally prove that, even if we leverage exclusively data from Italian firms, the metrics that we derive are predictive at the country level and capture a significant description of the input-output relations of global value chains.
title Product-level value chains from firm data: mapping trophic levels into economic growth
topic Physics and Society
General Economics
Economics
url https://arxiv.org/abs/2505.01133