Armando Rungi | IMT Lucca (original) (raw)

Papers by Armando Rungi

Research paper thumbnail of A Framework to Analyze the Position of European Firms in Global Value Chains

This document has been prepared for the European Commission however it reflects the views only of... more This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu).

Research paper thumbnail of Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?

SSRN Electronic Journal, 2012

This paper analyzes the performance of global value chains during the trade collapse. To do so, i... more This paper analyzes the performance of global value chains during the trade collapse. To do so, it exploits a unique transaction-level dataset on French firms containing information on cross-border monthly transactions matched with data on worldwide intra-.rm linkages as defined by property rights (multinational business groups, hierarchies of firms). This newly assembled dataset allows us to distinguish firm-level transactions among two alternative organizational modes of global value chains: internalization of activities (intra-group trade/trade among related parties) or establishment of supply contracts (arm's length trade/trade among unrelated parties). After an overall assessment of the role of global value chains during the trade collapse, we document that intra-group trade in intermediates was characterized by a faster drop followed by a faster recovery than arm's length trade. Amplified fluctuations in terms of trade elasticities by value chains have been referred to as the "bullwhip effect" and have been attributed to the adjustment of inventories within supply chains. In this paper we first con.rm the existence of such an effect due to trade in intermediates, and we underline the role that different organizational modes can play in driving this adjustment.

Research paper thumbnail of Business Groups as Hierarchies of Firms: Determinants of Vertical Integration and Performance

SSRN Electronic Journal, 2013

The network is composed of economists from the European System of Central Banks (ESCB)-i.e. the 2... more The network is composed of economists from the European System of Central Banks (ESCB)-i.e. the 27 national central banks of the European Union (EU) and the European Central Bank-a number of international organisations (World Bank, OECD, EU Commission) universities and think-tanks, as well as a number of non-European Central Banks (Argentina and Peru) and organisations (US International Trade Commission). The objective of CompNet is to develop a more consistent analytical framework for assessing competitiveness, one which allows for a better correspondence between determinants and outcomes. The research is carried out in three workstreams: 1) Aggregate Measures of Competitiveness; 2) Firm Level; 3) Global Value Chains CompNet is chaired by Filippo di Mauro (ECB). The three workstreams are headed respectively by Chiara Osbat (ECB), Antoine Berthou (Banque de France) and João Amador (Banco de Portugal). Julia Fritz (ECB) is responsible for the CompNet Secretariat. The refereeing process of this paper has been coordinated by Editorial Board of the ECB Working Paper Series, led by Philipp Hartmann. The paper is released in order to make the research of CompNet generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the ones of the author(s) and do not necessarily reflect those of the ECB, the ESCB, and of other organisations associated with the Network.

Research paper thumbnail of On Economic Complexity and the Fitness of Nations

Scientific reports, Jan 10, 2017

Complex economic systems can often be described by a network, with nodes representing economic en... more Complex economic systems can often be described by a network, with nodes representing economic entities and edges their interdependencies, while network centrality is often a good indicator of importance. Recent publications have implemented a nonlinear iterative Fitness-Complexity (FC) algorithm to measure centrality in a bipartite trade network, which aims to represent the 'Fitness' of national economies as well as the 'Complexity' of the products being traded. In this paper, we discuss this methodological approach and conclude that further work is needed to identify stable and reliable measures of fitness and complexity. We provide theoretical and numerical evidence for the intrinsic instability in the nonlinear definition of the FC algorithm. We perform an in-depth evaluation of the algorithm's rankings in two real world networks at the country level: the global trade network, and the patent network in different technological domains. In both networks, we fin...

Research paper thumbnail of Quelle fratture nascoste che ancora minacciano l'economia

Research paper thumbnail of A Framework to Analyze the Position of European Firms in Global Value Chains

This document has been prepared for the European Commission however it reflects the views only of... more This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu).

Research paper thumbnail of Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?

SSRN Electronic Journal, 2012

This paper analyzes the performance of global value chains during the trade collapse. To do so, i... more This paper analyzes the performance of global value chains during the trade collapse. To do so, it exploits a unique transaction-level dataset on French firms containing information on cross-border monthly transactions matched with data on worldwide intra-.rm linkages as defined by property rights (multinational business groups, hierarchies of firms). This newly assembled dataset allows us to distinguish firm-level transactions among two alternative organizational modes of global value chains: internalization of activities (intra-group trade/trade among related parties) or establishment of supply contracts (arm's length trade/trade among unrelated parties). After an overall assessment of the role of global value chains during the trade collapse, we document that intra-group trade in intermediates was characterized by a faster drop followed by a faster recovery than arm's length trade. Amplified fluctuations in terms of trade elasticities by value chains have been referred to as the "bullwhip effect" and have been attributed to the adjustment of inventories within supply chains. In this paper we first con.rm the existence of such an effect due to trade in intermediates, and we underline the role that different organizational modes can play in driving this adjustment.

Research paper thumbnail of Business Groups as Hierarchies of Firms: Determinants of Vertical Integration and Performance

SSRN Electronic Journal, 2013

The network is composed of economists from the European System of Central Banks (ESCB)-i.e. the 2... more The network is composed of economists from the European System of Central Banks (ESCB)-i.e. the 27 national central banks of the European Union (EU) and the European Central Bank-a number of international organisations (World Bank, OECD, EU Commission) universities and think-tanks, as well as a number of non-European Central Banks (Argentina and Peru) and organisations (US International Trade Commission). The objective of CompNet is to develop a more consistent analytical framework for assessing competitiveness, one which allows for a better correspondence between determinants and outcomes. The research is carried out in three workstreams: 1) Aggregate Measures of Competitiveness; 2) Firm Level; 3) Global Value Chains CompNet is chaired by Filippo di Mauro (ECB). The three workstreams are headed respectively by Chiara Osbat (ECB), Antoine Berthou (Banque de France) and João Amador (Banco de Portugal). Julia Fritz (ECB) is responsible for the CompNet Secretariat. The refereeing process of this paper has been coordinated by Editorial Board of the ECB Working Paper Series, led by Philipp Hartmann. The paper is released in order to make the research of CompNet generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the ones of the author(s) and do not necessarily reflect those of the ECB, the ESCB, and of other organisations associated with the Network.

Research paper thumbnail of On Economic Complexity and the Fitness of Nations

Scientific reports, Jan 10, 2017

Complex economic systems can often be described by a network, with nodes representing economic en... more Complex economic systems can often be described by a network, with nodes representing economic entities and edges their interdependencies, while network centrality is often a good indicator of importance. Recent publications have implemented a nonlinear iterative Fitness-Complexity (FC) algorithm to measure centrality in a bipartite trade network, which aims to represent the 'Fitness' of national economies as well as the 'Complexity' of the products being traded. In this paper, we discuss this methodological approach and conclude that further work is needed to identify stable and reliable measures of fitness and complexity. We provide theoretical and numerical evidence for the intrinsic instability in the nonlinear definition of the FC algorithm. We perform an in-depth evaluation of the algorithm's rankings in two real world networks at the country level: the global trade network, and the patent network in different technological domains. In both networks, we fin...

Research paper thumbnail of Quelle fratture nascoste che ancora minacciano l'economia