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The effects of low-cost countries on Portuguese manufacturing import prices

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  • Fátima Cardoso
  • Paulo Soares Esteves

Abstract

This paper estimates the direct effect of low-cost countries on Portuguese manufacturing import prices, using detailed data both by product and by geographical market for the period 1997-2006. The results point to a negative but modest direct effect when compared with studies available for other countries. This is understandable given the lower share of low-cost countries in Portuguese imports. However, besides this direct effect, import prices were influenced by several other factors, some also related to the increasing presence of low-cost countries in international markets. Overall, this lower direct effect was not reflected in a differentiated evolution of manufacturing import prices in Portugal as its evolution was very close to the average of the euro area countries

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File URL: http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200804.pdf
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Paper provided by Banco de Portugal, Economics and Research Department in its series Working Papers with number w200804.

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Date of creation: 2008
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Handle: RePEc:ptu:wpaper:w200804

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  1. Rui Esteves & Jaime Reis, 2007. "Market Integration in the Golden Periphery,The Lisbon/London Exchange, 1854-1891," Economics Series Working Papers 338, University of Oxford, Department of Economics.
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