IMF Working Papers

Measuring Competitiveness

By J. Peter Neary

September 1, 2006

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J. Peter Neary Measuring Competitiveness, (USA: International Monetary Fund, 2006) accessed November 12, 2024
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 reviews alternative approaches to measuring an economy's cost competitiveness and proposes some new measures inspired by the economic theory of index numbers. The indices provide a theoretical benchmark for estimated real effective exchange rates, but differ from standard measures in that they are based on marginal rather than average sectoral shares in GDP or employment. The use of the new indices is illustrated by some simple calculations that highlight the potential exposure of the Irish economy to fluctuations in the euro-sterling exchange rate.

Subject: Competition, Consumer price indexes, Cost of living, Employment, Real effective exchange rates

Keywords: Consumer price index, Price elasticity of supply, WP

Publication Details

  • Pages:

    21

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2006/209

  • Stock No:

    WPIEA2006209

  • ISBN:

    9781451864694

  • ISSN:

    1018-5941