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Competitiveness and external trade performance of the French manufacturing industry

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  • Pierre-Richard Agénor

Abstract

This paper provides an assessment of competitiveness and external trade performance of the French manufacturing industry during the 1980s and early 1990s. The first part of the paper reviews developments in a broad range of competitiveness indicators. The analysis indicates that the manufacturing sector appears to have maintained its competitive position in recent years. The second part discusses developments in export market shares. The third part estimates a vector error correction model relating the trade ratio to relative unit labor costs, domestic and foreign demand, and nonprice competitiveness. Variance decompositions suggest that fluctuations in price and nonprice competitiveness account for about two-fifths of fluctuations in manufacturing trade flows.
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Suggested Citation

  • Pierre-Richard Agénor, 1997. "Competitiveness and external trade performance of the French manufacturing industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 103-133, March.
    • Handle: RePEc:spr:weltar:v:133:y:1997:i:1:p:103-133
    DOI: 10.1007/BF02707679
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    References listed on IDEAS

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    1. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    2. Engle, R. F. & Granger, C. W. J. (ed.), 1991. "Long-Run Economic Relationships: Readings in Cointegration," OUP Catalogue, Oxford University Press, number 9780198283393.
    3. Giovanni Amendola & Giovanni Dosi & Erasmo Papagni, 1993. "The dynamics of international competitiveness," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(3), pages 451-471, September.
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    Cited by:

    1. Mr. Bogdan Lissovolik & Mr. Julio Escolano & Ms. Stefania Fabrizio & Mr. Werner Schule & Mr. Herman Z Bennett & Mr. Stephen Tokarick & Mr. Yuan Xiao & Ms. Marialuz Moreno Badia & Miss Eva Gutierrez & , 2008. "Competitiveness in the Southern Euro Area: France, Greece, Italy, Portugal, and Spain," IMF Working Papers 2008/112, International Monetary Fund.
    2. International Monetary Fund, 2008. "France, Greece, Italy, Portugal, And Spain: Competitiveness In The Southern Euro Area," IMF Staff Country Reports 2008/145, International Monetary Fund.
    3. Arta Mulliqi & Nick Adnett & Mehtap Hisarciklilar & Artane Rizvanolli, 2018. "Human Capital and International Competitiveness in Europe, with Special Reference to Transition Economies," Eastern European Economics, Taylor & Francis Journals, vol. 56(6), pages 541-563, November.
    4. Mr. Herman Z Bennett & Ziga Zarnic, 2008. "International Competitiveness of the Mediterranean Quartet: A Heterogeneous-Product Approach," IMF Working Papers 2008/240, International Monetary Fund.
    5. Agenor, Pierre-Richard & Bismut, Claude & Cashin, Paul & McDermott, C. John, 1999. "Consumption smoothing and the current account: evidence for France, 1970-1996," Journal of International Money and Finance, Elsevier, vol. 18(1), pages 1-12, January.
    6. Yap, Josef T., 1999. "Trade, Competitiveness and Finance in the Philippine Manufacturing Sector, 1980-1995," Discussion Papers DP 1999-12, Philippine Institute for Development Studies.
    7. Janno Reiljan & Maria Hinrikus & Anneli Ivanov, 2000. "Key Issues In Defining And Analysing The Competitiveness Of A Country," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 1, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Yilmaz Kilicaslan & Ilhom Temurov, 2015. "New Lessons from an Old Strategy: Import Substitution, Productivity and Competitiveness," EconWorld Working Papers 15002, WERI-World Economic Research Institute, revised Dec 2015.

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    More about this item

    Keywords

    C32; F17; F41;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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