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This document discusses the symptoms, diagnosis, and causes of the low growth and struggling exports in the Italian economy. It highlights the impact of labor costs, exchange rates, and specialization, as well as the role of human capital, structural rigidity, and competition. The figure shows the competitive pressure from low-cost countries in various sectors. The text is in English.
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European Commission – DG ECFIN Incontro degli studenti dell’Università Politecnica delle Marche con le Istituzioni Europee Competitività e struttura dell'economia italiana Bruxelles, 12 maggio 2005
Struttura dell’intervento (1) Sintomi: bassa crescita, esportazioni in affanno (2) Diagnosi: costo del lavoro, tassi di cambio, specializzazzione (3) Cause: capitale umano, rigidità strutturali, concorrenza
Figure 4: Competitive pressure from low-cost countries (Wage costs lower than one fourth of Italy’s) Furniture Home: other goods Home: construction Electronic goods Common consumer goods Fashion: intermediate Fashion: consumption Metal prod.: intermediate Machinery: other Change in market share of Low-cost countries (1998-03) Electrotech. goods Construction: intermediate The size of circles indicates Italy’s share in world trade Machinery: equipment Packaging Primary commod. Cars and bikes Food Chemical goods: intermediate Pharmaceuticals Share in world trade of low-cost countries (2003) Source: ICE European Commission – DG ECFIN