ABSTRACT
The aim of this chapter is to investigate whether increasing openness among OECD countries has affected the sensitivity of export shares to price and non-price factors of competitiveness. The last two decades have witnessed a process of gradual dismantling of trade barriers, internationalisation of production and, to some extent, technological globalisation. Here we are concerned with understanding the consequences of this process for international competition. Will this lead to a greater or a lesser importance of innovative activity and price competition in explaining countries’ performances in international markets? And will there be differences across sectors?
