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This paper provides an assessment of competitiveness and external trade performance of the French manufacturing industry during the 1980s and early 1990s. The first part of the paper reviews developments in a broad range of competitiveness indicators. The analysis indicates that the manufacturing sector appears to have maintained its competitive position in recent years. The second part discusses developments in export market shares. The third part estimates a vector error correction model relating the trade ratio to relative unit labor costs, domestic and foreign demand, and nonprice competitiveness. Variance decompositions suggest that fluctuations in price and nonprice competitiveness account for about two-fifths of fluctuations in manufacturing trade flows.

Exports and Imports --- Finance: General --- Labor --- Industries: Manufacturing --- Time-Series Models --- Dynamic Quantile Regressions --- Dynamic Treatment Effect Models --- Diffusion Processes --- State Space Models --- Trade: Forecasting and Simulation --- Open Economy Macroeconomics --- General Financial Markets: General (includes Measurement and Data) --- Trade: General --- Wages, Compensation, and Labor Costs: General --- Industry Studies: Manufacturing: General --- Finance --- International economics --- Labour --- income economics --- Manufacturing industries --- Competition --- Labor costs --- Manufacturing --- Exports --- Export performance --- Financial markets --- International trade --- Economic sectors --- France