{
  "title": "International Competitiveness of the Mediterranean Quartet: A Heterogeneous-Product Approach",
  "publication": "IMF Working Papers, October 1, 2008",
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  "summary": "The real effective exchange rate (REER) is the most commonly used measure for assessing international competitiveness. We develop a methodology to estimate the REER that incorporates two distinctive elements that are not considered in the current literature and apply it to the Mediterranean Quartet",
  "sections": [
    {
      "heading": "Methodology",
      "content": "- Develops a methodology to estimate the real effective exchange rate (REER) that incorporates two elements not considered in the current literature:\n  - (i) product heterogeneity when identifying each country's international competitors and their weights.\n  - (ii) a comprehensive treatment of services exports."
    },
    {
      "heading": "Scope and Sample",
      "content": "- Applies the methodology to the Mediterranean Quartet (MQ): Greece, Italy, Portugal, and Spain.\n- Compares MQ results to the rest of the euro area countries using the same methodology (difference-in-difference estimates)."
    },
    {
      "heading": "Key Findings",
      "content": "- The refined REER measure suggests a modest reduction in the observed REER gap between the MQ countries and the other euro area countries.\n- Considering product heterogeneity and services exports implies a lower real appreciation from 1998 to 2006 on the order of 2-3 percent for all MQ countries.\n- The results are reported as difference-in-difference estimates relative to the rest of the euro area countries using the same methodology."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subjects: Competition, Exports, Manufacturing, Real effective exchange rates, Service exports\n- Keywords: base year, cost competitiveness, emerging market, growth rate, WP\n\n---\n\n Content in this bundle\n\n- Wp08240\n  - Wp08240 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp08240 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-competitiveness-of-the-mediterranean-quartet-a-heterogeneous-product-approach-22113"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/international-competitiveness-of-the-mediterranean-quartet-a-heterogeneous-product-approach-22113/index.md)",
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    "Authors: Herman Z Bennett, Ziga Zarnic",
    "Published: October 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870985.001",
    "Develops a methodology to estimate the real effective exchange rate (REER) that incorporates two elements not considered in the current literature:",
    "Applies the methodology to the Mediterranean Quartet (MQ): Greece, Italy, Portugal, and Spain.",
    "Compares MQ results to the rest of the euro area countries using the same methodology (difference-in-difference estimates).",
    "The refined REER measure suggests a modest reduction in the observed REER gap between the MQ countries and the other euro area countries.",
    "Considering product heterogeneity and services exports implies a lower real appreciation from 1998 to 2006 on the order of 2-3 percent for all MQ countries.",
    "The results are reported as difference-in-difference estimates relative to the rest of the euro area countries using the same methodology.",
    "Subjects: Competition, Exports, Manufacturing, Real effective exchange rates, Service exports",
    "Keywords: base year, cost competitiveness, emerging market, growth rate, WP",
    "**Wp08240**"
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