Impact Of The Manufacturing Sector On The Export Competitiveness Of European Countries – A Spatial Panel Analysis

The purpose of this paper is to determine how changes in the export competitiveness of the EU economy (measured by exports and net exports) depend on changes in the competitiveness of processing industries, on the basis of manufacturing data from 19 EU countries over years 1995-2009 and using a spatial panel data model. The determinants of export competitiveness are selected in the light of predictions from international trade theory, growth theory and the theory of innovation. In particular, the paper explores how the size of foreign demand, the value of domestic demand, the level of ULC in the sector, the degree of openness of the sector to foreign markets, labour productivity and intermediate consumption in a sector affect the export competitiveness of the European economies selected. The results from spatial data models lead to a conclusion about the statistical significance of spatial dependencies in export competitiveness modelling. The analysis indicates the different determinants of export competitiveness, both if it is measured by export value and if it measured by net exports. The authors hope that the results will be a voice in the discussion on enhancing the competitiveness of European industrial sector

Changing Patterns in the Export of Goods Versus International Competitiveness. A Comparative Analysis for Central-East European Countries in the Period 2000–2011

This paper discusses the existing links between changing patterns in the export of goods, broken down by technology-intensity, versus intrenational competitiveness. The study covers nine Central-East European (CEE) economies: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and the Slovak Republic, in the time span 2000-2011. We examine the hypothesis of a strong, positive and statistically significant relationship between flows of export of high-tech and ICT manufactures industries goods, and an economy’s level of international competitiveness (approximated by the Global Competitiveness Index - GCI, see: World Economic Forum). Our methodological approach relies on elaboration of each country`s individual export patterns with regard to industries of different technology-intensities, and statistical analysis between the international GCI variable and variables identifying shares in total export of certain industries. Contrary to what was initially expected, our empirical results do not seem to support the hypothesis on statistically positive links between growing shares of high-tech and ICT manufactures industries in the total value of export versus the Global Competitiveness Index in the analyzed countries.Dane dotyczące eksportu pochodzą z bazy OECD STAN Bilateral Trade Database by Industry and End-use Category (BTDIxE), zaś te dotyczące międzynarodowej konkurencyjności - World Economic Forum. Wyniki przeprowadzonej analizy empirycznej nie potwierdzają statystycznej zależności między poziomem międzynarodowej konkurencyjności (GCI) a udziałem sektora high-tech oraz ICT w całości eksportu danego kraju

Mexican Agricultural and Food Export Competitiveness

This report analyzes the export performance of the Mexican agricultural and food sector in recent years with a particular emphasis on the changing competitiveness of those exports in the U.S. and world markets. The report includes an examination of the general trends in Mexican agricultural and food exports, an analysis of the international competitiveness of the major subgroups of Mexican agriculture based on the Revealed Comparative Advantage methodology, an assessment of the competitiveness of Mexican exports of specific agricultural and food products to the United States, a consideration of the effectiveness of Mexico’s agricultural and food export market diversification efforts, a discussion of the main factors likely to affect the long-term competitiveness of Mexican agriculture, and policy recommendations for enhancing the competitiveness of Mexican agricultural and food exports.Mexican, Exports, Food Export, Mexican Food, Competitiveness, International Development, International Relations/Trade,

Impact of WTO on Potato Export from India

Attempts are being made to export potatoes from India since 1970s but the quantities exported have been negligible and variable in spite of the fact that Indian potatoes are technically excellent and moderately export competitive. With the liberalization of Indian economy and establishment of WTO it was expected that the WTO regime would increase the price level in the international market due to implementation of proposed heavy cut in agricultural subsidies by the developed countries and hence the export of potatoes from India may get a boost. Under this backdrop, the study has ascertained the effect of establishment of WTO on export of potatoes from India. The study has indicated a declining export competitiveness of Indian potatoes in the post-WTO era, which requires immediate attention of policymakers as well as researchers in India to improve the export competitiveness by increasing the productivity and decreasing the cost of production. A need has been emphasized on giving some export incentives and easing some of the major infrastructural bottlenecks. Frozen-potatoes export from India had depicted competitiveness in the post-WTO era which can be encouraged to capture the fast expanding market of the product. The potato export from India can be made stable by either encouraging big export houses in the potato export or establishing a “Potato Board†to look into various aspects of potato export from the country.Agricultural and Food Policy,

Export performance, competitiveness and commodity composition

The study of export performance, especially for countries with serious external imbalances, is essential for economic decision-making. This study attempts to evaluate Greek export performance during the 1996-2006 period, using detailed panel data on bilateral trade by product. Factors explaining Greek export market shares are analysed with the method of Constant Market Shares. In addition, the dynamics of the specialization pattern of Greek exports and the effect of price competitiveness on export market shares are examined. The results show a considerable change in export structure, mainly the geographical structure, with a favourable effect on market shares. Although the pattern of comparative advantages and the technological intensity of Greek exports have improved, exports remain concentrated in low- and medium-technology sectors, while product variety and quality have declined. Finally, the results show heterogeneity among the panels. In the aggregate, export market shares are inelastic with respect to relative and absolute prices, which would call for focus on non-price factors to improve competitiveness in international markets. However, elasticities are greater than one for a considerable proportion of commodities.export performance; market shares; New Trade Theory; comparative advantages; Markov matrix; price and non-price competitiveness.

What Explains Germany’s Rebounding Export Market Share?

Germany’s export market share increased since 2000, while most industrial countries experienced declines. This study explores four explanations and evaluates their empirical contributions: (i) improved cost competitiveness, (ii) ties to fast growing trading partners, (iii) increased demand for capital goods, and (iv) regionalized production of goods (e.g. off-shoring). An export model is estimated covering the period 1993–2005. The dominant factor explaining the increase in market share are trade relationships with fast growing countries. Regionalized production in the export sector also played a part. Improved cost competitiveness had a comparatively smaller impact. There is no conclusive evidence of increased demand for capital goods.international trade, export

International Competitiveness—Where Pakistan Stands?

The concept of competitiveness has been widely accepted and has become a part of discussion in world-wide forums. Today global economy cannot be explained in the same manner as it was a few decades ago. Improved competitiveness of economies is a need of the day and ability to compete in the world market is of major concern. This paper attempts to assess the position of Pakistan in the International Competitiveness. As a survey paper, the concept, definition and the measurement of competitiveness have been analysed further to assess Pakistan’s position in the region. Competitiveness is linked with export performance of other trading and non trading countries. Pakistan’s export performance is analysed in this context. Lessons for Pakistan have been drawn on the basis of experiences of emerging economies. It has been concluded that countries can strengthen their export markets with the passage of time. They need to improve the governance as well as technological progress to increase high-tech exports. Developing countries like Pakistan start from low technology and with passage of time shift to improved technologies. Technology-based activities help improving export performance that brings competitiveness of a country. The paper also suggests a model to government of Pakistan which describes that high technology exports will be a result of extensive Research and Development (R&D) using human capital as an investment in the country. The success depends upon the combined efforts of the government, individuals and business initiatives both in public and private sectors.Competitiveness, Growth Performance

The Export Performance of the Euro Area countries in the period 1996-2007

This paper studies the export performance of the Euro Area and the majority of the Euro Area countries through a Constant Market Share Analysis. We keep a special focus on the three largest countries: Germany, France and Italy. The Constant Market Share Analysis provides a breakdown of an economy’s export performance into the separate components that are due to a Structure Effect, resulting from the product and destination market of its exports, and a broad Competitiveness Effect which is a residual category assumed to capture both price and non-price competitiveness.Constant Market Share Analysis, Export Performance, Specialization, Competitiveness, Euro Area.

The Impact of Competition Policy on Production and Export Competitiveness: A Perspective from Agri-food Processing

This study tests the hypothesis that competition policy positively impacts a country's production and export competitiveness. The results show that competition policy has a significantly positive impact on manufacturing production. The results also show that exports for both total manufacturing and food manufacturing are positively related to competition policy.Competition policy, production, export competitiveness, Agribusiness,

Price and Non - Price Competitiveness of Exports of Manufactures

This paper develops a demand function for Greece’s exports of manufactures according to New Trade Theory. The sample covers a rather long period of four decades with exports aggregated based on industrial rather than on trade classification. The study contributes to a better understanding of the effects of export prices, domestic and competitors’, as well as of non-price competitiveness approximated with capital stock, on export performance. The empirical estimation uses the Johansen maximum likelihood approach in the long run and a dynamic errorcorrection equation in the short run. The estimated long-run and short-run relationships follow the economic theory and are remarkably stable. It is shown that non-price competitiveness plays a vital role in explaining export performance in the long run as well as in the short run and that failure to include it in the export equation may lead to mis-specification error. As opposed to conventional models of export demand where income effects are very high, in the present study foreign income has a moderately high effect on exports in the long run and no effect in the short run. Exports are also sensitive to domestic and competitors’ prices in the long run, but cost and price competitiveness elasticities are close to one, indicating that Greek exporters have some ability to compete on the basis of prices.Export demand; price and non-price competitiveness; new trade theory; vector autoregressive error correction model