Italian exports face less elastic demand compared to other Euro countries.
The article compares how sensitive the demand for Italian exports is to changes in prices compared to other euro-area countries. They found that Italian exports go to markets with less price sensitivity than France, Germany, and Spain. This is mainly seen in the motor vehicle and transport equipment sectors. Excluding these sectors, the price sensitivity of exports from all four countries is similar. Italy's export composition does not make their demand more sensitive to price changes, unlike what some studies suggest.