A New Indicator of Competitiveness for Italy and the Main Industrial and Emerging Countries
AbstractThis paper presents the new competitiveness indicators of the Bank of Italy. While the old ones were calculated with reference to 25 industrial or OECD countries, the new indicators are available for 62 countries, including the main emerging and developing economies. In order to extend the country coverage, we have used a new methodology to compute country weights, introduced by the Federal Reserve, which is entirely based on trade flows; by contrast, the previous IMF-BIS methodology adopted for the old indicators required also data on the domestic production of the manufacturing sector — figures that are rarely available for non-industrial countries. In addition, we have adjusted the trade flows of China and Hong Kong as suggested in the literature, in order to reduce the distortions due to the entrepôt trade of these two countries. Results show that methodological differences have a negligible impact on competitiveness indicators; on the other hand, the effect of the country coverage may be quite remarkable. In Italy’s case, the old and new indicators show a similar dynamics in the period from January 1980 to September 2005; differences in levels, well-contained between 1980 and 1993, grow thereafter reaching a maximum of 5.5 percentage points. During the recent phase of dollar depreciation began in February 2002, Italy recorded a sharp decline in competitiveness. In addition to the United States, the countries that mostly contributed to this negative performance were Japan, China, Hong Kong and Taiwan. These losses were partly offset by the gains recorded with respect to several central and eastern European countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4703.
Date of creation: 05 Dec 2005
Date of revision:
Real Effective Exchange Rate; Entrepôt trade; Competitiveness;
Find related papers by JEL classification:
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F10 - International Economics - - Trade - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-09 (All new papers)
- NEP-CSE-2007-09-09 (Economics of Strategic Management)
- NEP-EEC-2007-09-09 (European Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Fernald & Hali Edison & Prakash Loungani, 1998. "Was China the first domino? assessing links between China and the rest of emerging Asia," International Finance Discussion Papers 604, Board of Governors of the Federal Reserve System (U.S.).
- Luca Buldorini & Stelios Makrydakis & Christian Thimann, 2002. "The effective exchange rates of the euro," Occasional Paper Series 02, European Central Bank.
- Michael P. Leahy, 1998. "New summary measures of the foreign exchange value of the dollar," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Oct, pages 811-818.
- Robert C. Feenstra, 1999. "Discrepancies in International Data: An Application to China-Hong Kong Entrepot Trade," American Economic Review, American Economic Association, vol. 89(2), pages 338-343, May.
- Macis, Mario & Schivardi, Fabiano, 2012.
"Exports and Wages: Rent Sharing, Workforce Composition or Returns to Skills?,"
CEPR Discussion Papers
8931, C.E.P.R. Discussion Papers.
- Macis, Mario & Schivardi, Fabiano, 2012. "Exports and Wages: Rent Sharing, Workforce Composition or Returns to Skills?," IZA Discussion Papers 6466, Institute for the Study of Labor (IZA).
- M. Macis & F. Schivardi, 2012. "Exports and Wages: Rent Sharing, Workforce Composition or Returns to Skills?," Working Paper CRENoS 201208, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Mario Macis & Fabiano Schivardi, 2012. "Exports and Wages: Rent Sharing, Workforce Composition or Returns to Skills?," Development Working Papers 333, Centro Studi Luca d\'Agliano, University of Milano, revised 16 Jul 2012.
- Mario Macis & Fabiano Schivardi, 2012. "Exports and Wages: Rent Sharing, Workforce Composition or Returns to Skills?," EIEF Working Papers Series 1205, Einaudi Institute for Economics and Finance (EIEF), revised Mar 2012.
- Andrea Finicelli & Massimo Sbracia & Andrea Zaghini, 2011.
"A disaggregated analysis of the export performance of some industrial and emerging countries,"
International Economics and Economic Policy,
Springer, vol. 8(1), pages 93-113, April.
- Finicelli, Andrea & Sbracia, Massimo & Zaghini, Andrea, 2008. "A disaggregated analysis of the export performance of some industrial and emerging countries," MPRA Paper 11000, University Library of Munich, Germany.
- Matteo Bugamelli & Fabiano Schivardi & Roberta Zizza, 2009.
"The euro and firm restructuring,"
Temi di discussione (Economic working papers)
716, Bank of Italy, Economic Research and International Relations Area.
- Matteo Bugamelli & Fabiano Schivardi & Roberta Zizza, 2010. "The euro and Firm Restructuring," Working Papers CELEG 1001, Dipartimento di Economia e Finanza, LUISS Guido Carli.
- Bugamelli, Matteo & Schivardi, Fabiano & Zizza, Roberta, 2010. "The Euro and Firm Restructuring," CEPR Discussion Papers 7623, C.E.P.R. Discussion Papers.
- Matteo Bugamelli & Fabiano Schivardi & Roberta Zizza, 2008. "The Euro and Firm Restructuring," NBER Working Papers 14454, National Bureau of Economic Research, Inc.
- Matteo Bugamelli & Fabiano Schivardi & Roberta Zizza, . "The euro and firm restructuring," Working Papers 10, Department of the Treasury, Ministry of the Economy and of Finance.
- Virginia Di Nino & Barry Eichengreen & Massimo Sbracia, 2011. "Real Exchange Rates, Trade, and Growth: Italy 1861-2011," Quaderni di storia economica (Economic History Working Papers) 10, Bank of Italy, Economic Research and International Relations Area.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.