The paper analyzes the export performance of Italy, France, Germany and Spain within the euro area, focusing on some factors that could explain the differences observed over the last twenty years. Specifically, the paper examines the dynamics of price competitiveness in the euro-area market based on a new indicator, and the entry of new competitors, such as China and Central and Eastern European countries (CEE6), into this market.
China's commercial penetration, given its similarity to Italy's productive specialization, and price-competitiveness developments penalized Italy's exports to the euro area, especially up to 2010; competitive pressures from the CEE6 damaged all four countries. More than the other countries, Germany counterbalanced the displacement of intra-euro area sales with an increase in those to China and to the CEE6, including through global production networks, thereby benefiting from their development.
