Trends in Italy’s Nonprice Competitiveness

 
Author/Editor: Lissovolik, Bogdan
 
Publication Date: May 01, 2008
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Italy's medium-term economic performance has raised "standard" competitiveness concerns as unit labor costs surged, and real export growth fell. But the recent economic upturn, low current account deficit, and robust nominal exports argue for less pessimism. An empirical analysis confirms the standard concerns, but also suggests that "residual" factors, which partly reflect nonprice economic restructuring, have supported Italy's real exports after 2005 (as in Germany but less so in France or Spain). An investigation of selected structural trends over the past decade offers some substantiation to Italy's "restructuring story," including quality upgrading, geographical trade diversification, and outsourcing. But sluggish services, low FDI, and modest "technological" upgrading indicate limits to Italy's restructuring.
 
Series: Working Paper No. 08/124
Subject(s): Italy | Competition | Exports | Export competitiveness | Economic indicators

Author's Keyword(s): Competitiveness | exports | restructuring.
 
English
Publication Date: May 01, 2008
Format: Paper
Stock No: WPIEA2008124 Pages: 34
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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