What lies behind export-led growth? An inquiry into the role of price and non-price competitiveness

Riccardo Pariboni and Walter Paternesi Meloni

Review of Keynesian Economics, 2025, vol. 13, issue 3, 377-403

Abstract: The paper enters the current debate at the intersection of comparative political economy and international trade on the role of price and non-price competitiveness in influencing export. Through an econometric exploration, we identify price competitiveness as a non-negligible factor in driving export for a set of Organisation for the Economic Co-operation and Development (OECD) countries from 1994 to 2019. The documented price sensitiveness, combined with the institutions and policies adopted to promote export-led growth, casts an unsettling light on the prospects for a recovery, particularly for the Euro area. These worrying conclusions are not, however, unescapable. The emergence of the export-led growth model – with its twin brother, the debt-led one – answered the demand-generating problems created by years of wage share decreases and a steady retreat of the State from its traditional demand management role. Drastically inverting these tendencies would contribute to strongly narrowing the need for export-led strategies.

Keywords: Comparative political economy; Export; Export-led growth price competitiveness; Non-price competitiveness; Economic crises (search for similar items in EconPapers)
JEL-codes: E02 F41 P16 (search for similar items in EconPapers)
Date: 2025
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