Analysis of the Competitive Position of EU Countries in Foreign Trade with the Use of the CMS and Ward’s Methods

2019 ◽  
Vol 66 (1) ◽  
pp. 69-83
Author(s):  
Marcin Salamaga

The purpose of the article is the multivariate analysis of export competitiveness in EU countries. It is based on the decomposition of changes in the exports of EU countries made using the model of Constant Market Share developed by Leamer and Stern (1970). The calculated effects of competitiveness, commodity composition, world trade and market distribution allow a detailed analysis of the sources of changes in export of compared countries, and in particular help to answer the question to what extent can changes in exports explain the global trade situation and to what extent do they result from proper proportion of market share, appropriate product assortment matching, or expansive exporter policy? In the comparative analysis there is used Ward's method, which allowed to indicate countries with the most similar competitive position in the spatial and commercial system in the field of goods with different shares of production factors. The presented results allow for a multidirectional comparison of the trade competitiveness of EU countries, as well as may be a source of important information on shaping the right proportions of participation and expansion of companies on foreign markets.

2021 ◽  
pp. 002190962110450
Author(s):  
Muhammad Abdul Kamal ◽  
Unbreen Qayyum ◽  
Saleem Khan ◽  
Bosede Ngozi Adeleye

This paper empirically investigated the trade competitiveness and trade potential of Pakistan and ASEAN countries in the Chinese market. The study utilizes trade data for the period of 2003–2019 to assess the bilateral trade aspects by using an extended gravity equation. In addition, the PPML model and constant market share analysis are applied to examine trade potential and competitiveness, respectively. Market size, distance, trade openness, revealed comparative advantage position and common border play an important role in bilateral trade of Pakistan and ASEAN with China, and coefficients of all these variables comply with the economic theory and are statistically significant. Pakistan along with Brunei, Cambodia, Laos, Myanmar, Philippines, and Thailand has great trade potential in the Chinese market. Particularly Cambodia and Vietnam are enjoying the highest competitive advantage as compared to other ASEAN countries. Pakistan’s export performance in China’s market relies on the market distribution effect. Based on this study, we have discussed country-specific future policy discourse for Pakistan and ASEAN countries in detail.


2012 ◽  
Vol 38 (1) ◽  
Author(s):  
Vanderlei José Sereia ◽  
Márcia Regina Gabardo da Camara ◽  
João Amilcar Rodrigues Anhesini

O objetivo deste artigo é analisar o comportamento dos principais indicadores de comércio exterior do complexo cafeeiro brasileiro entre 1990 e 2007. O Brasil é o maior produtor e exportador mundial de café e seu maior rival internacional é o Vietnã. O problema a ser estudado trata da evolução da competitividade - ganhos e perdas - do café brasileiro no período. O estudo discute os fundamentos econômicos sobre o comércio internacional,os indicadores internacionais de competitividade e caracteriza a dinâmica do complexo cafeeiro brasileiro. O problema a ser estudado é a evolução da competitividade, de forma a verificar ganhos e perdas de participação no comércio exterior, a partir de indicadores de comércio. Os procedimentosmetodológicos utilizados para verificar a existência de vantagens e analisar os indicadores de comércio exterior são o modelo Constant Market Share e as vantagens competitivas reveladas simétricas (CRVS) do café brasileiro (verde, torrado, solúvel e especial) em relação aos países concorrentes. Discutem-se as barreiras às importações impostas ao café brasileiro pelos países importadores e as possíveis políticas públicas e privadas favoráveis à competitividade das exportações de café. O artigo verifica a existência de vantagens e os principaisindicadores de comércio exterior sinalizam a expansão das exportações. O estudo conclui que o complexo cafeeiro é competitivo, especializado na exportação de café verde e tem baixa participação nos mercados de café torrado, solúvel e bebidas que contém café.Competitiveness in the cofee industry: an analysis from the market share and simetric revealed comparative advantageAbstract: The aim of this paper is to analyze the behavior of the main indicators of foreign trade in Brazilian coffee industry between 1990 and 2007. Brazil is the largest producer and exporter of coffee and Vietnam is the major rival in international market. The research problem to be studied is the evolution of competitiveness of Brazilian coffee, in order to verify gains and losses in foreign trade. The study discusses the fundamentals internationaltrade, international competitiveness indicators and characterized the dynamics of Brazilian coffee complex. The research objective is to verify the existence of competitive advantage in exports of coffee complex. The methodological procedures used to verify the advantages and analyzethe indicators of foreign trade are the Constant Market Share model and revealed symmetric competitive advantage (RSCAs) of Brazilian coffee (green, roasted, soluble and special) in relation to competing countries. We discuss the import barriers imposed on Brazilian coffee by importing countries and the possible public and private policies conducive to competitiveness of exports of coffee. The article notes that there are advantages and the main indicators of foreign trade indicate the expansion of exports. The study concludes that coffee is competitive and specializedin the export of green coffee and has low participation in the markets for roasted coffee, soluble and drinks containing coffee.Key-words: international trade; competitiveness; exportations coffee.JEL: F10; F17; F19.


2012 ◽  
Vol 2 (1) ◽  
pp. 98
Author(s):  
Jayasekhar Somasekharan ◽  
Harilal K. N ◽  
Parameswaran M.

<p>In this research paper a Constant Market Share (CMS) approach was employed to learn export performance dynamics of Indian seafood (shrimps and cephalopods) in the major export destinations (EU, USA and select Asian countries), which accounts for a sizeable market for Indian seafood. The Constant Market Share model was used to disintegrate the growth in exports of seafood into market size effect, market composition effect and competitiveness effect. The analysis was performed for the seafood exports for a span of 12 years from the year 1996 to the year 2007, the period during which India had to face severe challenges from evolving food safety regulations in the EU and USA. The analysis was extended to account for the competitiveness at dis-aggregated commodity level. In the present study we observed enhanced competitiveness in the case of cephalopods while shrimp exports were less competitive. To a certain extent it shows that trade facilitating as well as trade restricting effects can coexist as an impact of strict food safety regulations.</p>


This research Paper examines the export competiveness of oilseeds. The main and huge production in agriculture is oilseeds which make India on the first number in Production of oilseeds in the world. Oilseeds compose one of the significant groups of cash crops in Indian agriculture. India has a proportional benefit in agriculture and there is a considerable potential in raising farm returns and employment by stepping up agro base exports. The constant market share (CONSTANT MARKET SHARE) study framework is used to decompose changes in India’s share of the worldwide market for goods export in to competitiveness and structural consequence over 2001-2017. The CONSTANT MARKET SHARE Method is universally used to observe empirically the country’s export performance. This paper is addressed to examine the regions export performance by applying CONSTANT MARKET SHARE Method.


PLoS ONE ◽  
2021 ◽  
Vol 16 (5) ◽  
pp. e0250867
Author(s):  
María de las Mercedes Capobianco-Uriarte ◽  
Juan Aparicio ◽  
Jaime De Pablo-Valenciano ◽  
María del Pilar Casado-Belmonte

Most empirical studies examining the export competitiveness of a country in a target market are undertaken by focusing on supply, only analysing the group of competing countries. In addition, if the target market to be analysed is extensive, like the European Union, it is generally analysed as a whole. This study presents an evaluation of the tomato export competitiveness, from a differentiated demand perspective, analysing its main customers markets in the context of European Union. The methodological framework is implemented through Constant Market Share to analyze variations in exports, allowing the portion attributable to competitiveness and segregation into general or specific competitiveness to be quantified. The Constant Market Share was adapted to focus on the differentiated demand so as to observe the influence of the worldwide crisis (2007/08) on the European tomato market. This study allows the analysis of profile changes into the competitor exporting economies. As a contribution to the methodology, this study presents a new graphical way of representing the results of Constant Market Share methodology by means of export competitiveness maps in the European tomato market for the group for each main competitor in each European client market. According to our results, Spain and Belgium are candidate countries to be competitive in the main European markets.


2021 ◽  
Vol 58 (2) ◽  
pp. 175-198
Author(s):  
Bee Hui Soh ◽  
Ghee-Thean Lim ◽  
Soo Y Chua

Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.


2018 ◽  
Vol 7 (2) ◽  
pp. 25-32
Author(s):  
Sonu Madan ◽  
Rajni Sharma

The present study analyses trade competitiveness of wheat export of India for the time period 1991 to 2016 using Nominal Protection Coefficient (NPC), temporal behaviour of NPC and Constant Market Share Analysis. The results revealed that Indian wheat has not been competitive in a regular manner under both exportable and importable hypothesis. Indian wheat has been found to be competitive under importable and exportable hypothesis during the period 1991-92 to 2000-01 & during 2011-12 to 2015-2016, but not competitive during 2001-02 to 2010-11. Constant Market Share Analysis suggests that export growth of wheat is attributed only to world trade effect or growth in the size of world trade and market distribution effect or concentration of Indian wheat exports in the market, which are relatively growing. So far as, export competitiveness of Indian wheat is concerned, the analysis reveals that there is competitive disadvantage in the wheat exports as compared to rest of world.


HABITAT ◽  
2021 ◽  
Vol 32 (3) ◽  
pp. 130-140
Author(s):  
Fadhlan Zuhdi ◽  
Rachmiwati Yusuf

Coffee has been one of the mainstay products for Indonesia's exports to Germany since the last time and the frequency continues to increase. This reflects that Germany's need for coffee continues to grow. This study aims to measure the position of Indonesia's coffee export competitiveness in Germany. The method used in this research are Revealed Comparative Advantage (RCA) and Constant Market Share (CMS). The results showed that Indonesia's coffee exports were not competitive in Germany and had a downward trend. The export performance of Indonesian coffee in Germany also shows a downward trend in each period. Several things that need to be improved so that the competitiveness and performance of Indonesia's exports can increase is by disseminating information regarding the use of cultivation technology to increase the productivity of Indonesian coffee.


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