Publication

This paper analyzes the trade and technology focus and the price/cost performance of the German economy over the period 1990–2011. The authors apply the unit value approach to determine whether the competitiveness of German manufactured products is related to their price or quality advantage. They find that Germany specializes in medium-range technology products and that quality is the main driver of Germany’s international success. They also demonstrate that price and cost advantage determines competitiveness in some product groups and that R&D efforts have contributed to developing and maintaining German competitiveness in manufactured goods.