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The Use of Constant Market Share (CMS) Model to Assess Brazil Nut Market Competitiveness

Author

Listed:
  • Giovanna Aguiar
  • João da Silva
  • José Frega
  • Lorena de Santana
  • Jaqueline Valerius

Abstract

This paper aims to evaluate the variation of market share explained by structural and competitive forces using the Constant Market Share (CMS) model. Assuming that a country should maintain its market share to keep competitive, the equation used in the model analyzes the export basket composition, exports destination, growth or shrinkage of the world market and the competitiveness effect. The overall loss of the Brazilian market share in a time series from 1998-2012 is given due to the barriers of potential European markets and reduction of the market growth of the product with shell. In a different way, the increase in exports of shelled nuts to markets with higher growth rates contributed to a favorable outlook for Bolivian and Peruvian markets, which had a market share gain on the period.

Suggested Citation

  • Giovanna Aguiar & João da Silva & José Frega & Lorena de Santana & Jaqueline Valerius, 2017. "The Use of Constant Market Share (CMS) Model to Assess Brazil Nut Market Competitiveness," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 9(8), pages 174-174, July.
    • Handle: RePEc:ibn:jasjnl:v:9:y:2017:i:8:p:174
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    References listed on IDEAS

    as
    1. 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.
    2. Andrea Finicelli & Massimo Sbracia & Andrea Zaghini, 2011. "A disaggregated analysis of the export performance of some industrial and emerging countries," International Economics and Economic Policy, Springer, vol. 8(1), pages 93-113, April.
    3. Escobal, Javier & Aldana, Ursula, 2003. "Are Nontimber Forest Products the Antidote to Rainforest Degradation? Brazil Nut Extraction in Madre De Dios, Peru," World Development, Elsevier, vol. 31(11), pages 1873-1887, November.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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