France, Germany, Italy, and Spain: Explaining Differences in External Sector Performance Among Large Euro Area Countries
This cross-country paper explains differences in external sector performance among four large euro area countriesâ€”France, Germany, Italy, and Spain. The paper discusses that during 2001â€“04, the performance of the external sector differed markedly among these four largest euro area countries. The study presented in this paper describes the evolution of the traditional determinants of exports and importsâ€”domestic and foreign demand and cost and price competitivenessâ€”and econometrically assesses their contributions to the evolution of trade volumes during the period mentioned.
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