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Making room for new competitors. A comparative perspective on Italy’s exports in the euro-area market

Author

Listed:
  • Silvia Fabiani

    () (Bank of Italy)

  • Alberto Felettigh

    () (Bank of Italy)

  • Claire Giordano

    () (Bank of Italy)

  • Roberto Torrini

    () (Bank of Italy)

Abstract

Over the last two decades Italy’s intra-euro area export performance has been weak when compared with that of Germany and Spain, but not in relation to France. This paper first tracks the heterogeneous developments in the four countries’ goods exports in the euro-area market across different sub-periods and product categories. It then discusses some potential determinants of these dynamics: price competitiveness and the entry of new competitors, namely China and the Central and Eastern European countries (the “CEE6”), in the euro-area market. By exploiting several datasets and by using different techniques, the paper quantitatively explores the impact of developments in intra-euro area price competitiveness; it analyzes the role played by China and by the CEE6 in displacing the four economies’ exports in the euro-area market and in activating their total exports via the heightened import demand stemming from the new competitors. These effects are found to be heterogeneous across the four countries, and generally more unfavourable for Italy, thereby helping to explain the country’s relative underperformance, at least vis-à-vis Germany.

Suggested Citation

  • Silvia Fabiani & Alberto Felettigh & Claire Giordano & Roberto Torrini, 2019. "Making room for new competitors. A comparative perspective on Italy’s exports in the euro-area market," Questioni di Economia e Finanza (Occasional Papers) 530, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_530_19
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    goods exports; global value chains; competition from low-wage economies; euro area;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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