The effects of the introduction of taxes and subsidies in an Input-Output model with capital coefficients. An empirical investigation on the Italian economy

This work introduces an analytical approach to study the factors of international competitiveness based on a joint utilization of both the production filiere and the Porter' diamond of competitive advantage of nations. The approach is addressed to assess and explain the growing factors of distinction that characterize the competitive strategies of firms operating in certain local areas, sectors, countries. The two analytical tools proposed show a reciproca complementarity in that they allow to assess the single contribution of the various factors of specificity within the more complex relational system built-up from themselves. On the basis of this approach, an analysis of the factors of competitiveness of the firms operating in the tanning of hides' Solofra area is performed. The results enlighten that international competitiveness of these firms is based on the joint action of various specific factors acting more at local, sector and country level than at firm level.