Measures of External Competitiveness for Germany

34 Pages Posted: 15 Feb 2006

Date Written: September 1994


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.

JEL Classification: F10, F14, F17

Suggested Citation

Feldman, Robert, Measures of External Competitiveness for Germany (September 1994). IMF Working Paper, Vol. , pp. 1-34, 1994. Available at SSRN:

Robert Feldman (Contact Author)


No Address Available

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