In this paper, I delved into the Italy-MEDA emerging markets partnership from 2010 to 2019 using constant market shares analysis, presenting an innovative approach to understanding Italy-MEDA trade relationships. I analyzed the trade flows, cross-border operations on firms' equity, and firms' profitability by combining macro and microeconomic perspectives with data from sources ISTAT-Coeweb, UNCTAD-Comtrade, and ICE-Reprint. MEDA economies can represent an important opportunity for international business growth because destination markets for finished products and the Italian manufacturing industry's supply chain, especially following the "Arab Springs" unrest. The fluctuations in export-import dynamics, investment decisions, and firms' profitability may be attributed to this sociopolitical and economic upheaval. As a result, firms may have preferred to opt for more flexible market entry modes and lean organizations to better address perceived cultural differences on both sides. Finally, the study highlighted the need of updating policy frameworks to guide the Euro-Mediterranean partnership. Especially, it is necessary to align EU common actions with digital trade advancements.
Citation: Francesco Scalamonti. The Italy-MEDA emerging markets partnership: trade relationships, cross-border operations on firms' equity, and constant market shares analysis[J]. Data Science in Finance and Economics, 2025, 5(2): 258-292. doi: 10.3934/DSFE.2025012
In this paper, I delved into the Italy-MEDA emerging markets partnership from 2010 to 2019 using constant market shares analysis, presenting an innovative approach to understanding Italy-MEDA trade relationships. I analyzed the trade flows, cross-border operations on firms' equity, and firms' profitability by combining macro and microeconomic perspectives with data from sources ISTAT-Coeweb, UNCTAD-Comtrade, and ICE-Reprint. MEDA economies can represent an important opportunity for international business growth because destination markets for finished products and the Italian manufacturing industry's supply chain, especially following the "Arab Springs" unrest. The fluctuations in export-import dynamics, investment decisions, and firms' profitability may be attributed to this sociopolitical and economic upheaval. As a result, firms may have preferred to opt for more flexible market entry modes and lean organizations to better address perceived cultural differences on both sides. Finally, the study highlighted the need of updating policy frameworks to guide the Euro-Mediterranean partnership. Especially, it is necessary to align EU common actions with digital trade advancements.
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