A theoretical foundation for Constant Market Share analysis

Merkies, A. H. Q. M.; Meer, Tom van der

doi:10.1007/bf01973315

Cited by 38 publications

(26 citation statements)

References 30 publications

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“…4) the competitiveness term, an "unexplained" residual, reflects the difference between actual and hypothetical export increase if country A had maintained its share with regard to each commodity group. Merkies and Meer [9] define (i) to (iii) as the structural term, while (iv) as the competitiveness term. In contrast to the interpretation of such effects under structural term, the interpretation of competitiveness term is not as straight forward.…”

Section: A Analytical Modelsmentioning

confidence: 99%

How do Export Structure and Competitiveness EvolveSince Trade Liberalization? An Overview and Assessmentof Indonesian Manufacturing Export Performance

Rahmaddi¹,

Ichihashi²

2012

IJTEF

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Abstract-The paper aims to elucidate the evolution of competitiveness and quantifies the contribution of the geographical and commodity composition on Indonesian manufacturing exports classified by factor intensity for period of 1987 to 2008. Using constant market share (CMS) analysis and Revealed Comparative Advantage (RCA) indicators, we reveal that while mostly enjoying benefits from world export growth, Indonesia exports performance were deteriorated by the negative contribution of commodity composition and market distribution, and the role of competitiveness in manufacturing export performance, which was improved significantly right after trade liberalization policy unleashed in 1986 has been diminishing in recent years. In addition, most of Indonesian manufacturing exports were still concentrated in natural resource-and unskilled labor-intensive manufacturing commodities.Index Terms-Exports performance, specialization pattern, Indonesia, constant market share analysis, revealed comparative advantage.

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Section: A Analytical Modelsmentioning

confidence: 99%

How do Export Structure and Competitiveness EvolveSince Trade Liberalization? An Overview and Assessmentof Indonesian Manufacturing Export Performance

Rahmaddi¹,

Ichihashi²

2012

IJTEF

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“…Assuming, in addition, uniform income elasticities of goods within a group, prices of goods outside the group will only affect real expenditure of the group (and not its composition). Following Merkies and van der Meer (1988), the scale and competitive effects can be expressed as follows:…”

Section: Market-shares Normmentioning

confidence: 99%

Constant market shares analysis: uses, limitations and prospects*

Ahmadi‐Esfahani

2006

Aus J Agri & Res Econ

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In this paper, we generalise the constant market shares (CMS) framework, with particular attention to the underlying theoretical conditions required for diagnostic interpretation. The approach is applied to the analysis of the export performance of the Australian processed food sector in South-East Asia over the period 1980-2003. We conclude that the usefulness of CMS analysis for evaluating a country's international trade performance depends upon the empirical validity of the aggregation assumptions implicit in the diagnostic interpretation.

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“…A vital exposition of this method of analysis, specifically on the competitiveness term was provided by Richardson (1971). More critical expositions and theoretical arguments were put forth by Merkies and van der Meer (1988). Moreover, It has also been employed by a many authors to analyze the export performance of developing nations in terms of general competitiveness (Chen, Xu, & Duan, 2000;Juswanto & Mulyanti, 2003;Nalin Kumar & Muraleedharan, 2007;Thi Anh-Dao Tran et al, 2009;Gatto et al, 2011;Beltramello et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Coping with the Standards Regime: Analyzing Export Competitiveness of Indian Seafood Industry

Somasekharan¹,

Harilal²,

Parameswaran³

2012

SAR

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In this research paper a Constant Market Share (CMS) approach was employed to learn export performance dynamics of Indian seafood (shrimps and cephalopods) in the major export destinations (EU, USA and select Asian countries), which accounts for a sizeable market for Indian seafood. The Constant Market Share model was used to disintegrate the growth in exports of seafood into market size effect, market composition effect and competitiveness effect. The analysis was performed for the seafood exports for a span of 12 years from the year 1996 to the year 2007, the period during which India had to face severe challenges from evolving food safety regulations in the EU and USA. The analysis was extended to account for the competitiveness at dis-aggregated commodity level. In the present study we observed enhanced competitiveness in the case of cephalopods while shrimp exports were less competitive. To a certain extent it shows that trade facilitating as well as trade restricting effects can coexist as an impact of strict food safety regulations.

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A theoretical foundation for Constant Market Share analysis

Cited by 38 publications

References 30 publications

How do Export Structure and Competitiveness EvolveSince Trade Liberalization? An Overview and Assessmentof Indonesian Manufacturing Export Performance

How do Export Structure and Competitiveness EvolveSince Trade Liberalization? An Overview and Assessmentof Indonesian Manufacturing Export Performance

Constant market shares analysis: uses, limitations and prospects*

Coping with the Standards Regime: Analyzing Export Competitiveness of Indian Seafood Industry

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