Recent French Export Performance: Is There a Competitiveness Problem?

Alain Kabundi () and Nadal-De Simone, Francisco

No 09/2, IMF Working Papers from International Monetary Fund

Abstract: Recently, the export performance of France relative to its own past and relative to a major trading partner, Germany, deteriorated. That deterioration seems related to the geographical destination and product composition of trend exports. Faced with an increase in unit labor costs or in its terms of trade, France adjusts relatively less via price and wage changes, and more via employment changes. Given that SMIC convergence resulted in a significant increase in unit labor costs, foreign sector difficulties might be structural. Trade flows relevance and euro area policy constraints highlight the importance of structural reforms that increase markets flexibility.

Keywords: Export competitiveness; Performance indicators; Terms of trade; International trade; Exports; Trade models; Productivity; Euro Area (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eec and nep-int
Date: 2009-01-12

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