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Non-price competitiveness of exports from emerging countries

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  • Wörz, Julia
  • Benkovskis, Konstantins

Abstract

Building on the methodology pioneered by Feenstra (1994) and Broda and Weinstein (2006), we construct an export price index that adjusts for changes in the set of competitors (variety) and changes in non-price factors (quality in a broad sense) for nine emerging economies (Argentina, Brazil, Chile, China, India, Indonesia, Mexico, Russia and Turkey). The highly disaggregated dataset covers the period 1996?2011 and is based on the standardised 6-digit Harmonized System (HS). Our method highlights notable differences in non-price competitiveness across markets. China shows a huge gain in international competitiveness due to non-price factors. Similarly, Brazil, Chile, India and Turkey show discernible improvements in their competitive position when accounting for non-price factors. Oil exports account for strong improvement in Russia's non-price competitiveness, as well as the modest losses of competitiveness for Argentina and Indonesia. Mexico's competitiveness deteriorates prior to 2006 and improves afterwards. JEL Classification: C43, F12, F14, L15

Suggested Citation

  • Wörz, Julia & Benkovskis, Konstantins, 2013. "Non-price competitiveness of exports from emerging countries," Working Paper Series 1612, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20131612
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    References listed on IDEAS

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    Cited by:

    1. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness," Discussion Papers 10/2014, Deutsche Bundesbank.
    2. repec:agr:journl:v:6(595)(supplement):y:2014:i:6(595)(supplement):p:295-309 is not listed on IDEAS
    3. repec:hhs:bofitp:2013_018 is not listed on IDEAS
    4. Osbat, Chiara & Zollino, Francesco & Aiello, Giovanni & Bluhm, Benjamin & Buelens, Christian & Cavallini, Flavia & Joseph, Andreas & Leonte, Alexandru & Lommatzsch, Kirsten & Momchilov, Georgi & Giord, 2015. "Compendium on the diagnostic toolkit for competitiveness," Occasional Paper Series 163, European Central Bank.
    5. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2017. "Back on track? A macro-micro narrative of Italian exports," Questioni di Economia e Finanza (Occasional Papers) 399, Bank of Italy, Economic Research and International Relations Area.
    6. Paweł Gajewski & Grzegorz Tchorek, 2017. "What drives export performance of firms in Eastern and Western Poland?," European Planning Studies, Taylor & Francis Journals, vol. 25(12), pages 2250-2271, December.
    7. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness – Results for Pacific Rim economies," Journal of International Money and Finance, Elsevier, vol. 49(PA), pages 152-169.
    8. Karsten Staehr & Robert Vermeulen, 2016. "How competitiveness shocks affect macroeconomic performance across euro area countries," DNB Working Papers 515, Netherlands Central Bank, Research Department.
    9. O. Kostoska & P. Mitrevski, 2016. "Evaluating foreign trade specialization and qualitative competitiveness of a transition economy: the case of Macedonia," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(3), pages 633-655, August.
    10. repec:mje:mjejnl:v:12:y:2017:i:2:p:141-150 is not listed on IDEAS
    11. International Monetary Fund, 2013. "Turkey; Selected Issues Paper," IMF Staff Country Reports 13/364, International Monetary Fund.
    12. Lommatzsch, Kirsten & Silgoner, Maria A. & Ramskogler, Paul, 2016. "Trade in value added: Do we need new measures of competitiveness?," Discussion Papers 52/2016, Deutsche Bundesbank.
    13. repec:ecb:ecbops:2012163 is not listed on IDEAS
    14. repec:onb:oenbfi:y:2017:i:q3/17:b:2 is not listed on IDEAS
    15. Kiyotaka Sato & Junko Shimizu & Nagendra Shrestha & Shajuan Zhang, 2013. "Industry-specific Real Effective Exchange Rates and Export Price Competitiveness: The Cases of Japan, China, and Korea," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(2), pages 298-321, December.
    16. repec:mje:mjejnl:v:13:y:2017:i:2:p:141-150 is not listed on IDEAS
    17. Ana-Maria CAZACU (BANCU), 2014. "Romania’s external competitiveness. A macro approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(Special), pages 295-309, June.

    More about this item

    Keywords

    emerging countries; non-price competitiveness; quality; relative export price;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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