Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/154073 
Year of Publication: 
2014
Series/Report no.: 
ECB Working Paper No. 1640
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
The paper proposes a theoretical framework for explaining gains and losses in export market shares by considering both price and non-price determinants. Starting from a demand-side model à la Armington (1969), we relax several restrictive assumptions to evaluate the contribution of unobservable changes in taste and quality, taking into account differences in elasticities of substitution across product markets. Using highly disaggregated trade data from UN Comtrade, our empirical analysis for the major world exporters (G7 and BRIC countries) reveals the dominant role of non-price factors in explaining the competitive gains of BRIC countries and concurrent decline in the G7’s share of world exports.
Subjects: 
export market share decomposition
non-price competitiveness
real effective exchange rate
JEL: 
C43
F12
F14
L15
Document Type: 
Working Paper

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