Euro Area Export Performance and Competitiveness
AbstractConcerns 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.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 11/140.
Date of creation: 01 Jun 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-CBA-2011-07-21 (Central Banking)
- NEP-EEC-2011-07-21 (European Economics)
- NEP-INT-2011-07-21 (International Trade)
- NEP-OPM-2011-07-21 (Open Economy Macroeconomic)
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