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Export Performance of China: A Constant Market Share Analysis

Author

Listed:
  • Nidhi Bagaria

    (Department of Economics, Jamia Millia Islamia, New Delhi-110025, India)

  • Saba Ismail

    (Department of Economics, Jamia Millia Islamia, New Delhi-110025, India)

Abstract

In the light of the fact that there has been substantial growth in China's exports in last three decades, particularly after China joined the WTO in 2001, this article investigates the major sources of China's export performance during 2002¨C2014 by using the constant market share (CMS) model. In this study, exports are further decomposed in three categories based on their technological intensity using Lall (2000) classification on 3 digit SITC Revision-3 data provided by UN Comtrade via WITS database. The categories are high technology, medium technology and low technology. It is found that growth of China's exports has, moreover, remained above world exports growth in all three categories during the period of study. The analysis reveals that export performance is mainly attributed to its competitive strength in the global market, though decreasing trend has been observed in the competitiveness of all three categories. Increasing cost of labor and appreciating RMB could be the causes behind decreasing competitiveness of Chinese exports. Product structure effect, on an average, has turned out to be negative in all the categories which is the most disturbing aspect of China's export performance. On the other hand, geographical structure effect has positive impact on export performance of high-technology based exports whereas it has negative impact on export performance of low-technology and medium-technology based exports. China being the world's largest exporter, decreasing competitiveness and wrong product structure effect could adversely influence its export performance in particular and its growth in general.

Suggested Citation

  • Nidhi Bagaria & Saba Ismail, 2019. "Export Performance of China: A Constant Market Share Analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 14(1), pages 110-130, March.
    • Handle: RePEc:fec:journl:v:14:y:2019:i:1:p:110-130
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0007-9
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    Citations

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    Cited by:

    1. Zhiqi Chen & Afshan Dar‐Brodeur, 2020. "Trade and labour standards: Will there be a race to the bottom?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 916-948, August.
    2. Yu, Miao & Zhao, Xintong & Gao, Yuning, 2019. "Factor decomposition of China’s industrial electricity consumption using structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 67-76.
    3. Kumar, K. Nirmal Ravi, 2022. "Competitiveness of Indian Agricultural Exports: A Constant Market Share Analysis," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 3(2), May.

    More about this item

    Keywords

    constant market share (CMS); China's share in world exports; export performance; market share effect; product structure effect; geographical structure effect; competitiveness; hi-tech;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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