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The Development of EU and EU Member States' External Competitiveness

  • Angela Cheptea
  • Charlotte Emlinger
  • Lionel Fontagné
  • Gianluca Orefice
  • Olga Pindyuk

We revisit competitiveness issues using recent data and show that the global financial crisis has taken a toll on European producers that before 2007 were maintaining their market positions. The EU competitiveness in goods has recently deteriorated, even in the upper and high-tech segments of the world market. The decline recorded by European exporters is attributable purely to performance and not to adverse orientation of their exports. However, European exports are predominantly "Made in Europe" and include an increasing share of services. The within Europe advantages in manufacturing seem to have been exhausted and further gains imply moves outside the EU with an enhanced focus on the competitiveness in services as an important determinant of future European industry.

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Paper provided by CEPII research center in its series Working Papers with number 2014-06.

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Date of creation: Mar 2014
Date of revision:
Handle: RePEc:cii:cepidt:2014-06
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  1. Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers 2010-23, CEPII research center.
  2. Amit Khandelwal, 2007. "The Long and Short (of) Quality Ladders," 2007 Meeting Papers 244, Society for Economic Dynamics.
  3. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
  4. Juan Carlos Hallak & Peter K. Schott, 2008. "Estimating Cross-Country Differences in Product Quality," NBER Working Papers 13807, National Bureau of Economic Research, Inc.
  5. David L. Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports 72, Federal Reserve Bank of New York.
  6. Louise Curran & Soledad Zignago, 2009. "Evolution of EU and its Member States' Competitiveness in International Trade," Working Papers 2009-11, CEPII research center.
  7. Roy, Martin, 2011. "Services commitments in preferential trade agreements: An expanded dataset," WTO Staff Working Papers ERSD-2011-18, World Trade Organization (WTO), Economic Research and Statistics Division.
  8. Foster-McGregor, Neil & Stehrer, Robert, 2013. "Value added content of trade: A comprehensive approach," Economics Letters, Elsevier, vol. 120(2), pages 354-357.
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