Measures of External Competitiveness for Germany

Author/Editor:

Robert A Feldman

Publication Date:

September 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper assesses Germany's external competitive position from several angles. It first examines movements in several real exchange rate indices. The analysis of competitiveness is then supplemented by using the so-called constant market share approach, and finally by examining briefly both pressures on profit margins in the tradable goods sector as well as export prospects. A key conclusion of the analysis is that the deterioration of Germany's external competitiveness suggested by some commonly used indicators of the real appreciation of the deutsche mark, such as those based on relative unit labor costs in manufacturing, is generally exaggerated.

Series:

Working Paper No. 1994/113

Subject:

Competition Economic sectors Export performance Exports Financial markets International trade Labor Labor costs Manufacturing

English

Publication Date:

September 1, 1994

ISBN/ISSN:

9781451853650/1018-5941

Stock No:

WPIEA1131994

Pages:

34

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