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Competitiveness of Latvia's exporters

  • Konstantīns Beņkovskis

    ()

    (Monetary Policy Department, Bank of Latvia)

This paper evaluates the competitiveness of Latvia's exporters from various aspects by using detailed trade data from UN Comtrade. Competitiveness represented by the market share of Latvia's products in world trade was on a rising trend, growing almost two times between 1999 and 2010. This dynamic improvement was mainly accounted for by intensive margin, as Latvia's exporters increased their presence on traditional markets. Moreover, the contribution of extensive margin was also positive due to geographical expansion. Analysis of non-price competitiveness signals that although Latvia's export unit values were increasing faster than those of its main competitors, relative quality and taste for Latvia's products were rising even faster, and, overall, the competitiveness of Latvia's exporters improved.

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Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 12 (2012)
Issue (Month): 2 (December)
Pages: 17-45

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Handle: RePEc:bic:journl:v:12:y:2012:i:2:p:17-45
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  1. Konstantins Benkovskis & Ramune Rimgailaite, 2010. "The Quality and Variety of Exports from New EU Member States: Evidence from Very Disaggregated Data," Working Papers 2010/02, Latvijas Banka.
  2. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
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  17. Konstantins Benkovskis & Julia Wörz, 2014. "How does taste and quality impact on import prices?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(4), pages 665-691, November.
  18. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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  20. Catriona Purfield & Christoph B. Rosenberg, 2010. "Adjustment Under a Currency Peg: Estonia, Latvia and Lithuania During the Global Financial Crisis 2008-09," IMF Working Papers 10/213, International Monetary Fund.
  21. Martine Durand, 1986. "Method of Calculating Effective Exchange Rates and Indicators of Competitiveness," OECD Economics Department Working Papers 29, OECD Publishing.
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