“Made in China”: how does it affect our understanding of global market shares?

Konstantins Benkovskis and Wörz Julia
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Wörz Julia: Foreign Research Division, Oesterreichische Nationalbank, 1090 Vienna, Austria
Authors registered in the RePEc Author Service: Julia Maria Woerz ()

The B.E. Journal of Macroeconomics, 2018, vol. 18, issue 2, 26

Abstract: We propose a comprehensive decomposition of changes in global market shares that accounts for the value-added content. We find that the ongoing globalization process affects market shares directly by shifting production from developed to developing countries. Moreover, apparent improvements in the relative quality of exported goods from most new EU member states and developing countries occur to some extent from higher quality imported inputs. Hence, the process of outsourcing high-quality production from developed countries plays an important role and reduces the contribution of residual non-price factors in explaining market share gains of developing countries.

Keywords: China; fragmentation; non-price factors; value-added content of trade (search for similar items in EconPapers)
JEL-codes: C43 F12 F15 L15 O47 (search for similar items in EconPapers)
Date: 2018
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Working Paper: "Made in China" - How does it affect our understanding of global market shares? (2015)
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DOI: 10.1515/bejm-2017-0223

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