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What Explains Germany’s Rebounding Export Market Share?

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  • Stephan Danninger
  • Fred Joutz

Abstract

Germany’s export market share increased since 2000, while most industrial countries experienced declines. This study explores four explanations and evaluates their empirical contributions: (i) improved cost competitiveness, (ii) ties to fast growing trading partners, (iii) increased demand for capital goods, and (iv) regionalized production of goods (e.g. off-shoring). An export model is estimated covering the period 1993–2005. The dominant factor explaining the increase in market share are trade relationships with fast growing countries. Regionalized production in the export sector also played a part. Improved cost competitiveness had a comparatively smaller impact. There is no conclusive evidence of increased demand for capital goods.

Suggested Citation

  • Stephan Danninger & Fred Joutz, 2007. "What Explains Germany’s Rebounding Export Market Share?," CESifo Working Paper Series 1957, CESifo.
    • Handle: RePEc:ces:ceswps:_1957
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    More about this item

    Keywords

    international trade; export;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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