IDEAS home Printed from https://ideas.repec.org/p/pdn/ciepap/42.html
   My bibliography  Save this paper

A tree-form constant market share model for growth causes in international trade based on multi-level classification

Author

Listed:
  • Yuanhua Feng

    (University of Paderborn)

  • Zhichao Guo

    (University of Paderborn)

  • Christian Peitz

    (University of Paderborn)

  • Xiangyong Tan

    (China Agricultural Universtity, Beijing Technology and Business University)

Abstract

This paper introduces a tree-form constant market share (CMS) model for analyzing growth causes in international trade based on multi-level classification. The tree- form CMS is a collection of CMS models at different levels, including the entire, branch- and leaf-models, which consists of a large amount of information and has a wide application spectrum. Basic properties of this model are investigated in detail. It is shown that the tree- form CMS model is superior to other CMS models in the literature. It is also shown that well known CMS formulations are special cases of a linear class with two parameters, which control how the interaction term is divided into the demand growth and competitive terms. Application to bilateral trade between China and Germany shows that the growth causes in different periods are clearly different. It is shown that the outputs of the tree-form CMS model can be used for further suitable statistical analysis. Furthermore, our theoretical findings are also confirmed by those data examples.

Suggested Citation

  • Yuanhua Feng & Zhichao Guo & Christian Peitz & Xiangyong Tan, 2011. "A tree-form constant market share model for growth causes in international trade based on multi-level classification," Working Papers CIE 42, Paderborn University, CIE Center for International Economics.
    • Handle: RePEc:pdn:ciepap:42
    as

    Download full text from publisher

    File URL: http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP42.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. C. J. Jepma, 1989. "Extensions of the Constant-Market-Shares Analysis with an Application to Long-term Export Data of Developing Countries," International Economic Association Series, in: Jeffrey G. Williamson & Vadiraj R. Panchamukhi (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 6, pages 129-143, Palgrave Macmillan.
    2. Kevin Chen & Lian Xu & Yufeng Duan, 2000. "Ex-Post competitiveness of China's export in agri-food products: 1980-96," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 281-294.
    3. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-304, August.
    4. Marini, Giovanni, 2010. "An Application of Constant Market Share Analysis for the Study of Firm Profitability," MPRA Paper 25814, University Library of Munich, Germany.
    5. Sun, J. W., 1998. "Changes in energy consumption and energy intensity: A complete decomposition model," Energy Economics, Elsevier, vol. 20(1), pages 85-100, February.
    6. Zhang, ZhongXiang, 2003. "Why did the energy intensity fall in China's industrial sector in the 1990s? The relative importance of structural change and intensity change," Energy Economics, Elsevier, vol. 25(6), pages 625-638, November.
    7. Angela Cheptea & Guillaume Gaulier & Soledad Zignago, 2004. "The World Market: Market Shares and Export Performances," La Lettre du CEPII, CEPII research center, issue 231.
    8. Jan Fagerberg & Gunnar Sollie, 1987. "The method of constant market shares analysis reconsidered," Working Papers Archives 1987001, Centre for Technology, Innovation and Culture, University of Oslo.
    9. Uwe Blien & Katja Wolf, 2002. "Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 391-414.
    10. Georgios Fotopoulos, 2007. "Integrating Firm Dynamics into the Shift‐Share Framework," Growth and Change, Wiley Blackwell, vol. 38(1), pages 140-152, March.
    11. Andrea Beltramello & Koen De Backer & Laurent Moussiegt, 2012. "The Export Performance of Countries within Global Value Chains (GVCs)," OECD Science, Technology and Industry Working Papers 2012/2, OECD Publishing.
    12. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 353-364, May.
    13. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    14. Merkies, A H Q M & van der Meer, T, 1988. "A Theoretical Foundation for Constant Market Share Analysis," Empirical Economics, Springer, vol. 13(2), pages 65-80.
    15. Mazzanti, Massimiliano & Montini, Anna, 2009. "Regional and Sector Environmental Efficiency Empirical Evidence from Structural Shift-share Analysis of NAMEA data," Sustainable Development Papers 50360, Fondazione Eni Enrico Mattei (FEEM).
    16. Guo, Zhichao & Feng, Yuanhua & Tan, Xiangyong, 2011. "Short- and long-term impact of remarkable economic events on the growth causes of China–Germany trade in agri-food products," Economic Modelling, Elsevier, vol. 28(6), pages 2359-2368.
    17. Milana, Carlo, 1988. "Constant-market-shares analysis and index number theory," European Journal of Political Economy, Elsevier, vol. 4(4), pages 453-478.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guo, Zhichao & Feng, Yuanhua & Tan, Xiangyong, 2011. "Short- and long-term impact of remarkable economic events on the growth causes of China–Germany trade in agri-food products," Economic Modelling, Elsevier, vol. 28(6), pages 2359-2368.
    2. Zhichao Guo & Yuanhua Feng & Xiangyong Tan, 2011. "Impact of China's accession to WTO and the financial crisis on China's exports to Germany," Working Papers CIE 36, Paderborn University, CIE Center for International Economics.
    3. Guo, Zhichao & Feng, Yuanhua, 2013. "Modeling of the impact of the financial crisis and China's accession to WTO on China's exports to Germany," Economic Modelling, Elsevier, vol. 31(C), pages 474-483.
    4. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d'Europe centrale et orientale (PECO)," Working Papers hal-00637591, HAL.
    5. Gaulier, G. & Santoni, G. & Taglioni, D. & Zignago, S., 2013. "Market Shares in the Wake of the Global Crisis: the Quarterly Export Competitiveness Database," Working papers 472, Banque de France.
    6. Liu, Yan & Shi, Xunpeng & Laurenceson, James, 2020. "Dynamics of Australia's LNG export performance: A modified constant market shares analysis," Energy Economics, Elsevier, vol. 89(C).
    7. Escaith, Hubert, 2021. "Revisiting constant market share analysis: An exercise applied to NAFTA," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 47123, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Yuanhua Feng & Zhichao Guo & Christian Peitz & Xiangyong Tan, 2011. "A tree-form constant market share analysis for modelling growth causes in international trade," Working Papers CIE 37, Paderborn University, CIE Center for International Economics.
    9. Ahmadi-Esfahani, Fredoun Z., 2006. "Constant market shares analysis: uses, limitations and prospects," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 1-17, December.
    10. Angela Cheptea & Lionel Fontagné & Soledad Zignago, 2014. "European export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 25-58, February.
    11. Gilbert, John & Muchová, Eva, 2018. "Export competitiveness of Central and Eastern Europe since the enlargement of the EU," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 78-85.
    12. Aziz Murat Hatipagaoglu, 2017. "Structural Change in Turkey’s Foreign Trade: 1990-2014 Period," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 3(2), pages 93-106, December.
    13. Bonanno, Graziella, 2014. "A note: Constant Market Share Analysis," MPRA Paper 59997, University Library of Munich, Germany.
    14. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d’Europe centrale et orientale(PECO)," Larefi Working Papers 201005, Larefi, Université Bordeaux 4.
    15. Goran Buturac & Željko Lovrinèeviæ & Davor Mikuliæ, 2017. "International Competitiveness and Restructuring of the Croatian Food Industry," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(3), pages 435-462, September.
    16. 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.
    17. Ivo Zdráhal & Francois Stefanus Lategan & Melissa van der Merwe, 2023. "A constant market share analysis of the competitiveness of the Czech Republic's agrifood exports (2002-2020) to the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(12), pages 498-509.
    18. Fitrianto, Gigih & Widodo, Tri, 2017. "Generalized Constant Market Shares (G-CMS) Analysis: Composition and Partition Approach," MPRA Paper 79484, University Library of Munich, Germany.
    19. Le Thi Bich Lien & Dalut Alfred Nanwul, 2018. "A Comparison on Rice export between China and Vietnam: A constant market share analysis," E3 Journal of Business Management and Economics., E3 Journals, vol. 9(1), pages 001-011.
    20. Tasew Tadesse & Jaswinder Singh Brar, 2016. "Sources of Ethiopia’s Export Growth: a Constant Market Shares Decomposition Analysis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 74-95, September.

    More about this item

    Keywords

    Tree-form CMS; international trade; growth causes; general CMS formulations;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pdn:ciepap:42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: WP-WiWi-Info or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cipadde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.