Year: 2015
Author: Thanagopal, Thannaletchimy
Applied Economics Quarterly, Vol. 61 (2015), Iss. 3 : pp. 229–260
Abstract
Constant Market Shares Analysis is useful in explaining the gain in export market shares of a country through two terms – structural and competitive effect. However, the model fails to define the type of competitiveness – whether a country is competitive in terms of prices (price competitiveness) or in terms of non-price factors such as quality and variety (non-price competitiveness). This article attempts to improve this analysis by estimating individual price and non-price competitive effect using an export share equation. Our article is original in representing product quality with a ‘knowledge’ variable that reflects the technological know-how of the country including knowledge spillovers from other countries and industries. Using a highly disaggregated industrial trade data over a period of 16 years (1996 to 2011), we find evidence of competitive effects in BRIC exports towards major industrialized countries namely EU-14 (excluding Luxembourg), Japan, United States and Norway. We also find that this gain in export market share is largely attributed to better price competition rather than non-price competition. The industrial results, however, indicate the presence of non-price competitiveness in selected homogeneous product sectors during this period, suggesting the beginning of a shift in BRIC export competitiveness.
JEL Classification: F12, F13, F14, F49
You do not have full access to this article.
Already a Subscriber? Sign in as an individual or via your institution
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/aeq.61.3.229
Applied Economics Quarterly, Vol. 61 (2015), Iss. 3 : pp. 229–260
Published online: 2015-09
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 32