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The method of constant market shares analysis reconsidered

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  • Jan Fagerberg

    (Centre for Technology, Innovation and Culture, University of Oslo)

  • Gunnar Sollie

Abstract

Constant market shares (CMS) analyses are frequently used in applied studies of export development. This paper reviews the development of the method and argues that it can be considerably improved. A new version of the method is developed which, in addition to the familiar CMS effects, also allows for the calculation of effects reflecting the ability of each country to adapt its export structure to the changes in the commodity and country composition of world imports. The method is applied to a sample of 20 OECD countries for the period 1961-83.

Suggested Citation

  • 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.
  • Handle: RePEc:tik:wparch:1987001
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    File URL: http://www.tik.uio.no/InnoWP/archive/wpno001-1987.pdf
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    References listed on IDEAS

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    1. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
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