EconPapers    
Economics at your fingertips  
 

Real Effective Exchange Rates determinants and growth: lessons from Italian regions

Silvia Calò () and Mariarosaria Comunale
Additional contact information
Silvia Calò: Central Bank of Ireland

No 456, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: In this paper we analyse the price competitiveness of the Italian regions by computing the Real Effective Exchange Rate (REER) for each region, deflated by CPI and vis-à-vis the main partner countries. We use them to look for the medium-term determinants, finding significant heterogeneities in the role of government consumption and investment expenditure. Government consumption has an extremely negative effect on competitiveness in North-Eastern Italy, Southern Italy and Lazio. Investment plays a negative role especially in the North-West, while it can be positive for competitiveness in Lazio and Southern Italy. We also find that the transfer theory does not necessarily hold and it even behaves in the opposite direction in case of North-Eastern Italy and Lazio. Lastly, we show that an increase in the regional price competitiveness influences regional growth positively only in the long run and spillovers may play a role.

Keywords: Italian regions; government consumption; government investment; Real Effective Exchange Rate; growth. (search for similar items in EconPapers)
JEL-codes: E62 F31 F41 R11 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2019-03-27, Revised 2019-03-27
New Economics Papers: this item is included in nep-mac, nep-opm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://www.ceistorvergata.it/repec/rpaper/RP456.pdf Main text (application/pdf)

Related works:
Working Paper: Real Effective Exchange Rates determinants and growth: lessons from Italian regions (2019) Downloads
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:rtv:ceisrp:456

Ordering information: This working paper can be ordered from
CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
http://www.ceistorvergata.it

Access Statistics for this paper

More papers in CEIS Research Paper from Tor Vergata University, CEIS CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma. Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Piazzi ().

 
Page updated 2020-04-09
Handle: RePEc:rtv:ceisrp:456