Trade and Industrial Development in East Asia
Show Less

Trade and Industrial Development in East Asia

Catching Up or Falling Behind

Peter C.Y. Chow

Trade as an engine of growth has played a catalyst role in East Asian development; through vigorous study of performances in past decades, East Asian trade and industrialization experiences may offer some lessons for other developing countries. This book covers trade and industrial structures for ten countries and regions including Japan, China, Hong Kong, Korea, Singapore, Taiwan, Indonesia, Malaysia, the Philippines and Thailand.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 6: Sources of Export Growth: A Constant Market Share Analysis

Peter C.Y. Chow


Export growth in any country could come from the demand side as well as the supply side. To investigate the sources of export growth, it is necessary to examine both the export markets’ changing conditions and the export country’s relative competitiveness, defined as its domestic supply relative to supply from its competitors. One of the tools for analyzing sources of growth is the “constant market share” (CMS), first introduced by Tyszynski (1951), who calculated what the hypothetical share of a country’s exports in the world market would have been if its market share in each commodity group had remained constant over time. The difference between the hypothetical and the initial market shares is the change in the market share for that country. The residual term, which is the difference between the final and the hypothetical market shares, is the competitiveness effect. CMS analysis was further developed by Leamer and Stern (1970). They decomposed the sources of export growth (greater than the world trend) into a commodity composition effect, a market distribution effect, and a competitiveness effect. The commodity composition effect is used to measure whether the growth in exports is due to the changing commodity composition of exports as market demand for various commodities changes dynamically from time to time. The market distribution effect measures whether the growth is due to the changing export destinations as some markets grew rapidly whereas others became stagnant. The competitiveness effect is used to measure whether the growth in exports is due to the...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.