World Trade Competitiveness: A Disaggregated View by Shift-Share Analysis
We develop an improved shift-share methodology and employ it to estimate the trade competitiveness of 88 world countries during the 1995-2002 period and to identify factors that drove each country’s increase or drop in exports market share. Along with the export competitiveness, we consider the geographical and sectoral dimension of countries’ initial position on different import markets and of their capacity to adapt to shifts in the world economy. Differently from the traditional method employed in the literature, our procedure yields identical results regardless the order in which trade is decomposed in geographical and sectoral factors. Moreover, it produces standard errors and permits to evaluate the statistical significance of each effect.
International trade; competitiveness; market access; specialization; international comparison; Asia; South America; trade; shift-share; export performance
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