Export or Perish: Can Internal Devaluation Create Enough Good Jobs in Southern Europe?

Sofia A. Perez and Manos Matsaganis

South European Society and Politics, 2019, vol. 24, issue 2, 259-285

Abstract: During the early 2010s, creditor states and EU institutions demanded that the Southern states of the eurozone liberalise their labour markets to facilitate internal devaluation and export-led recoveries. With some variation, the Greek, Portuguese, Spanish and Italian governments complied. This article explains why such a strategy of internal devaluation within the eurozone might fail to produce adequate employment growth to put these countries on stable financial footing. It exploits variation in the timing and intensity of reforms to evaluate the record of the internal devaluation strategy. Our findings suggest that there is no linear relationship between internal devaluation and export-growth. Even where the latter has been impressive, dualism persists and the employment recovery has been weak.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/13608746.2019.1644813 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:fsesxx:v:24:y:2019:i:2:p:259-285

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/fses20

DOI: 10.1080/13608746.2019.1644813

Access Statistics for this article

South European Society and Politics is currently edited by Susannah Verney

More articles in South European Society and Politics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().