Bobeica, Elena, Christodoulopoulou, Styliani, Tkačevs, Olegs, (2016), “The role of price and cost competitiveness for intra- and extra-euro area trade of euro area countries”, European Central Bank, Working Paper Series 1941, July
Since restoring price competitiveness is usually regarded as essential in external rebalancing of euro area countries, we seek to uncover the impact of cost and price competitiveness on goods trade flows of individual euro area countries, distinguishing between trade within and outside the euro area. We estimate standard export and import equations over the sample period 1995:Q1 – 2013:Q3, where five different price and cost competitiveness measures are considered in turn as one of the explanatory variables. These five indicators are based on a consumer price index (CPI), domestic sales producer price index (PPI), gross domestic product deflator (GDP), unit labour costs for the manufacturing sector (ULCM) and for the total economy (ULCT).
Relevant Posts
- Staehr, Karsten, Vermeulen, Robert, (2016), “How competitiveness shocks affect macroeconomic performance across euro area countries “, European Central Bank, Working Paper Series 1940, July
- Eurostat/Euro area international trade in goods surplus €24.6 bn – €6.4 bn surplus for EU28/141/2016 – 15 July 2016