What Drives the Market Share Changes? Price Versus Non-Price Factors

Konstantins Benkovskis and Julia Woerz ()

No 2014/03, Working Papers from Latvijas Banka

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 a 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 share of world exports.

Keywords: export market share decomposition; non-price competitiveness; real effective exchange rate (search for similar items in EconPapers)
JEL-codes: C43 F12 F14 L15 (search for similar items in EconPapers)
Date: 2014-08-13
New Economics Papers: this item is included in nep-ind and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://www.bank.lv/images/stories/pielikumi/publi ... et-Share-Changes.pdf (application/pdf)
https://www.macroeconomics.lv/sites/default/files/wp_3-2014-benkovskis_woerz.pdf (application/pdf)

Related works:
Journal Article: What drives the market share changes? Price versus non-price factors (2018)
Working Paper: What drives the market share changes? price versus non-price factors (2014)
Working Paper: What drives the market share changes? Price versus non-price factors (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ltv:wpaper:201403

Access Statistics for this paper

More papers in Working Papers from Latvijas Banka Contact information at EDIRC.
Bibliographic data for series maintained by Konstantins Benkovskis ().