IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-074220151110.html
   My bibliography  Save this article

European Chemical Industry Competitiveness: Historical Trends And Development Prospects

Author

Listed:
  • Dmytro Gladkykh

    () (Department of International Economics Assistant, Donetsk National University (Vinnitsa), Ukraine)

Abstract

The purpose of the paper is to analyze historical trends and development prospects of the European chemical industry competitiveness. It is concluded that the chemical industry is one of the EU's most successful spheres, boasting €527 billion in sales in 2013, making it the second-largest global manufacture. Methodology. To explain the competitiveness of the EU chemical branch in the global market, it is proposed the constant-market share methodology to chemical exports coupled with econometric analysis. Results. The constant market share (CMS) approach to assessing competitiveness, developed in the 1970 s for analysis of trade, is based on the principle that changes in the geographic and product structures of exports will affect a country's export growth relative to that of the world, and that is way its global export market share. There were analyzed the EU biggest exporters (Germany, France, Italy, UK, Spain, Netherlands, Belgium, Poland), the USA, Japan; China, India, Saudi Arabia, Brazil. Practical implication. The analysis presents the results of competitiveness assessment in a different way, showing the average annual growth rate of EU and world chemical exports in the top section and then decomposing the gap between the two into that thanks to growth dynamics (structure effect) and competitive effect. It is defined a lot of factors that are important to industrial competitiveness. On the cost side, in many industries labor is a large enough share of overall production costs that international differences in salaries can have a large bearing on competitiveness. Costs are also affected by a variety of government policies. It is also defined that innovation is one of the most important factors, which opens up new opportunities both in terms of new products and more efficient processes for manufacturing existing products. Value/originality. Given analysis helps to understand the causes and factors that have an impact on the European chemicals competitiveness what gives an opportunity to make forecasts and prospects of the future development of this sector.

Suggested Citation

  • Dmytro Gladkykh, 2015. "European Chemical Industry Competitiveness: Historical Trends And Development Prospects," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 1(1).
  • Handle: RePEc:bal:journl:2256-0742:2015:1:1:10
    DOI: 10.30525/2256-0742/2015-1-1-62-66
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/12/12
    Download Restriction: no

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/12
    Download Restriction: no

    More about this item

    Keywords

    chemicals competitiveness; global manufacturing; constant market share; international comparison; competitive effect;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

    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:bal:journl:2256-0742:2015:1:1:10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anita Jankovska). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.