IDEAS home Printed from https://ideas.repec.org/p/rif/wpaper/143.html

Export Market Share Decomposition, Export Performance, and Investment Activity

Author

Listed:
  • Kaitila, Ville

Abstract

We use goods export data at the SITC 3-digit level to analyse countries’ world market-share developments in 2002–2024. We divide the data into technological categories and use an existing econometric method with annual weighted-OLS to divide the market-share changes into estimated structural composition effects (export destinations and exported products) and performance effects. Typically, emerging economies have grown stronger through performance, but older industrialised countries have partly compensated their performance-induced market-share losses with a better product composition of exports. Finland and Italy are exceptions as countries that have also had a weak export product composition. We further analyse the performance changes of European countries’ exports using an econometric panel data analysis with data for GDP variables, nominal unit labour costs and effective exchange rates, investment, and statistics on the activities of multinational corporations. We find that investment and FDI activity are positively associated with performance.

Suggested Citation

  • Kaitila, Ville, 2026. "Export Market Share Decomposition, Export Performance, and Investment Activity," ETLA Working Papers 143, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:wpaper:143
    as

    Download full text from publisher

    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-143.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Skriner, Edith, 2009. "Competitiveness and Specialisation of the Austrian Export Sector. A Constant-Market-Shares Analysis," Economics Series 235, Institute for Advanced Studies.
    6. 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.
    7. Álvaro Pina, 2011. "Structural Reforms to Reduce Unemployment and Restore Competitiveness in Ireland," OECD Economics Department Working Papers 910, OECD Publishing.
    8. 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.
    9. João Amador & Sónia Cabral, 2008. "The Portuguese Export Performance in Perspective: A Constant Market Share Analysis," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    10. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    11. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    12. Alberto González Pandiella, 2015. "A Constant Market Share Analysis of Spanish Goods Exports," OECD Economics Department Working Papers 1186, OECD Publishing.
    13. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    14. Edith Skriner, 2009. "Competitiveness and Specialisation of the Austrian Export Sector - A Constant-Market-Shares Analysis," FIW Working Paper series 032, FIW.
    15. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    16. repec:ptu:bdpart:b200813 is not listed on IDEAS
    17. Graziella Bonanno, 2016. "Constant Market Share Analysis: A Note," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 59(1), pages 33-47.
    18. Angela Cheptea & Guillaume Gaulier & Soledad Zignago, 2004. "The World Market: Market Shares and Export Performances," La Lettre du CEPII, CEPII research center, issue 231.
    19. Constantina Backinezos & Stelios Panagiotou & Athina Rentifi, 2019. "Greek export performance: a constant market share analysis," Economic Bulletin, Bank of Greece, issue 50, pages 45-65, December.
    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. 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.
    2. 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.
    3. Yuanhua Feng & Zhichao Guo & Christian Peitz, 2014. "A Tree-form Constant Market Share Model for Growth Causes in International Trade Based on Multi-level Classification," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 207-228, June.
    4. Guillaume Gaulier & Santoni, G. & Taglioni, D. & Soledad Zignago, 2013. "Market Shares in the Wake of the Global Crisis: the Quarterly Export Competitiveness Database," Working papers 472, Banque de France.
    5. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d'Europe centrale et orientale (PECO)," Working Papers hal-00637591, HAL.
    6. Klaus Vondra, 2014. "Austria Holds Intra-EU Export Market Shares almost Constant despite Difficult Economic Environment," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 54-74.
    7. 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).
    8. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    9. Lionel Fontagné & Sophie Hatte, 2013. "European High-End Products in International Competition," PSE - G-MOND WORKING PAPERS hal-00959394, HAL.
    10. A team of the Working Group on Econometric Modelling of the European System of Central Banks, 2012. "Competitiveness and external imbalances within the euro area," Occasional Paper Series 139, European Central Bank.
    11. 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.
    12. Gao, Yue & Whalley, John & Ren, Yonglei, 2014. "Decomposing China's export growth into extensive margin, export quality and quantity effects," China Economic Review, Elsevier, vol. 29(C), pages 19-26.
    13. Steven Husted & Shuichiro Nishioka, 2015. "Productivity growth and new market entry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(4), pages 687-712, November.
    14. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2015. "Tariff Liberalization and Trade Integration of Emerging Countries," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 946-971, November.
    15. Heli Simola, 2018. "Chinese Services Gaining Significance in Global Production Chains," Asian Economic Papers, MIT Press, vol. 17(2), pages 50-64, Summer.
    16. repec:ecr:col031:47123 is not listed on IDEAS
    17. Yan Liu & Xunpeng Shi & James Laurenceson, 2018. "Are China's Exports Crowding Out or Being Crowded Out? Evidence from Japan's Imports," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(4), pages 1-23, July.
    18. Cyrielle Gaglio, 2015. "Measuring Country Competitiveness: A Survey of Exporting-based Indexes," GREDEG Working Papers 2015-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    19. Françoise Lemoine & Sandra Poncet & Deniz Ünal & Clément Cassé, 2015. "L’usine du monde au ralenti ou le changement de régime du commerce extérieur chinois," Working Papers 2015-04, CEPII research center.
    20. 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.
    21. Cheptea, Angela & Huchet-Bourdon, Marilyne, "undated". "The competitiveness of French agri-food exports: a methodological and comparative approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274272, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rif:wpaper:143. 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: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.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.