Competitiveness and the Export Performance of the Euro Area

Republic of Estonia

“…Essentially, the change in the export share is the area in red in Figure 4, which can be broken down in three areas representing the intensive and extensive margins and the interaction term. A more detailed description of the methodology and an example of how it is applied to measuring competitiveness is provided in di Mauro et al (2005). Although the methodology is beset by several well-documented theoretical problems, it is informative for our purposes.…”