Part of the problem was that the Italian industrial base was so small.
Even if you put all the small pieces of a small pie together you still have a small pie.
The export of aircraft during the 30s actually doesn't amount to a whole lot in the terms of WW II production.
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Excluding the aircraft sold or given to Franco's Nationalists, modern fighter and bomber exports from 1937 to 1940 included 79× Savoia-Marchetti SM.79s, 82× Fiat BR.20s, 171× Fiat CR.42s, 35× Fiat G.50s, and 130× Reggiane Re.2000s."
161 multi engine aircraft and 335 single engine fighters in 3-4 years.
In 1940 the US built 1685 single engine fighters of all types. Curtiss was building 114 to 168 fighters per month in last 7 months of 1940.
Even if the Italians had kept all of those aircraft at home (and given up the cash/raw materials) that only equaled 2 months of 1940 production to either the US or Britain.
And 1937 aircraft were death traps in 1940, let alone 1941.
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Even as Mussolini looked for a way to bring Italy into the war in spring 1940, the desperate need for hard currency and strategic goods made him initially approve export orders of 12 Macchi C.200 fighters to Denmark and, shockingly, 300× Caproni Ca. 313 reconnaissance bombers, 100× Ca. 311 trainers, and 300× Re.2000 fighters to Britain"
Ca.311 "trainer"
Box art. Basically as super Avro Anson. 470-500hp engines, wooden wings and steel tube and mostly fabric fuselage, not much light alloy being exported to the future enemy

CA 313
Basically the same plane with over 700hp air cooled V-12s.
Basically a non-strategic Blenheim

a lot less alloy and engines of lower power than a Bristol Mercury.
Re.2000 fighter
A lot of P-35 influence. Might have been better than MC 200?
Most of the early ones went to Sweden and Hungary.
And we are back to the engines.
The Piaggio P.XI R.C.40 was developed from the Gnome Rhone 14K which used a two bearing crankshaft, but you got a Hercules sized engine for hundreds of pounds less. Where the cross-over point to go to a 3 bearing version is somewhat debatable. If you have 87 octane fuel and can't use much boost the 3 bearing crank is useful but less so than if you have better fuel. You also have to figure out how to make deeper, thinner, more closely spaced fins if you want to make more power (higher rpm means higher heat rejection) The Soviet M-88 came from the same 14K base.
But the Piaggio P.XI was several hundred pounds heavier than the Fiat A.74 and about 80mm bigger in diameter. Please note that the Piaggio was about the same weight as P&W R-1830 with a single speed supercharger used in the P-36.
The Italian engines may not have had the reliability but that may be due to a number of things, like poor materials.
Basically Italy had less industrial capacity than Canada and was trying to play world power.
Il Duce's mouth was writing checks his body (industry) couldn't cash.