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Euro Area Export Performance and Competitiveness
Author:
Mr. Jarkko Turunen
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Mr. Richard T. Harmsen
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Mr. Tamim Bayoumi
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Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 140
Language:
English
Publication Date:
01 Jun 2011
DOI:
https://doi.org/10.5089/9781455265459.001
ISBN:
9781455265459
ISSN:
1018-5941
Pages:
16
Keywords:
WP; euro; CPI; exchange rate; export; Exports; Competitiveness; Trade equations; Euro area; export equation; area trade; PPI datum; CPI price series; area export; export volume; Real effective exchange rates; Competition; Exchange rates; Consumer price indexes
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Concerns about export growth within the euro area peripheral countries due to a lack of competitiveness within the euro area are a key policy issue. Our analysis suggests that: (i) Long-term price elasticities for intra-euro area exports are at least double those for extra-euro area exports, so traditional real effective exchange rate indexes may overstate the effectiveness of euro depreciation in restoring exports growth in the euro area periphery and; (ii) There are surprisingly wide divergences across alternative relative price measures and even when relative price data suggest a steady loss in intra- (and extra-) euro area competitiveness, the pace of deterioration depends on the measure of relative prices used.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund