Price and non-price competitiveness in export demand: empirical evidence from Italy

Bernardina Algieri

Empirica, 2015, vol. 42, issue 1, 157-183

Abstract: This study aims to provide an overview of recent developments in the export performance and international competitiveness of Italy. Using a flexible approach based on a structural time series model, I have assessed the extent to which price competitiveness and non-price competitiveness affect Italian export behaviour. The results of analysis reveal that Italy has experienced a shift to the left of its export demand, which suggests a decline in the country’s international competitiveness since the mid-1990s. More specifically, a 1 % drop in price competitiveness has contracted Italian export volumes by 0.8 %, while a 1 % decrease in non-price competitiveness has narrowed export volumes by 2.9 %. Altogether, these and other findings indicate that erosion to non-price competitiveness plays a role more significant than price in affecting export performances. Copyright Springer Science+Business Media New York 2015

Keywords: Price; Non-price competitiveness; Italy; C22; C51; F14 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s10663-014-9257-z

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