Composition of Exports and Export Performance of Eurozone Countries

Abstract:

This article investigates to what extent the composition of exports is related to the export performance of eurozone countries using a data set on exports from the oldest eurozone countries to their top 20 trade partners for the period 1988–2009. The results suggest that a higher share of high technology exports in total exports is positively related to total exports. Export composition also conditions the effects of the real exchange rate and partner income growth. The effect of the real exchange rate on exports becomes smaller the higher the share of high technology exports in total exports. The effect of partner income on exports becomes larger the higher the share of high technology exports in total exports.