Euro Area Export Performance and Competitiveness

 
Author/Editor: Bayoumi, Tamim ; Harmsen, Richard T. ; Turunen, Jarkko
 
Publication Date: June 01, 2011
 
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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: Concerns about export growth within the euro area peripheral countries due to a lack of competitiveness within the euro area are a key policy issue. Our analysis suggests that: (i) Long-term price elasticities for intra-euro area exports are at least double those for extra-euro area exports, so traditional real effective exchange rate indexes may overstate the effectiveness of euro depreciation in restoring exports growth in the euro area periphery and; (ii) There are surprisingly wide divergences across alternative relative price measures and even when relative price data suggest a steady loss in intra- (and extra-) euro area competitiveness, the pace of deterioration depends on the measure of relative prices used.
 
Series: Working Paper No. 11/140
Subject(s): Cross country analysis | Demand | Economic models | Euro Area | Export competitiveness | Export growth | Export performance | Exports | Price elasticity | Real effective exchange rates

Author's Keyword(s): Exports | Competitiveness | Trade equations | Euro area
 
English
Publication Date: June 01, 2011
Format: Paper
Stock No: WPIEA2011140 Pages: 16
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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