Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212773 
Year of Publication: 
2013
Series/Report no.: 
BOFIT Discussion Papers No. 18/2013
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
The paper proposes a theoretical framework to explain gains and losses in export market shares by their 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 Com-trade, 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
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-22-6
Document Type: 
Working Paper

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