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Non-price competitiveness of exports from emerging countries

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  • Wörz, Julia
  • Benkovskis, Konstantins

Abstract

Building on the methodology pioneered by Feenstra (1994) and Broda and Weinstein (2006), we construct an export price index that adjusts for changes in the set of competitors (variety) and changes in non-price factors (quality in a broad sense) for nine emerging economies (Argentina, Brazil, Chile, China, India, Indonesia, Mexico, Russia and Turkey). The highly disaggregated dataset covers the period 1996?2011 and is based on the standardised 6-digit Harmonized System (HS). Our method highlights notable differences in non-price competitiveness across markets. China shows a huge gain in international competitiveness due to non-price factors. Similarly, Brazil, Chile, India and Turkey show discernible improvements in their competitive position when accounting for non-price factors. Oil exports account for strong improvement in Russia's non-price competitiveness, as well as the modest losses of competitiveness for Argentina and Indonesia. Mexico's competitiveness deteriorates prior to 2006 and improves afterwards. JEL Classification: C43, F12, F14, L15

Suggested Citation

  • Wörz, Julia & Benkovskis, Konstantins, 2013. "Non-price competitiveness of exports from emerging countries," Working Paper Series 1612, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20131612
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    Cited by:

    1. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness," Discussion Papers 10/2014, Deutsche Bundesbank.
    2. Benkovskis, Konstantins & Wörz, Julia, 2018. "What drives the market share changes? Price versus non-price factors," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 9-29.
    3. Lommatzsch, Kirsten & Silgoner, Maria A. & Ramskogler, Paul, 2016. "Trade in value added: Do we need new measures of competitiveness?," Discussion Papers 52/2016, Deutsche Bundesbank.
    4. Csath, Magdolna, 2018. "Competitiveness Based on Knowledge and Innovation – Possibilities of Increasing Budget Revenues in the Era of Digitalisation and Robotisation," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(1), pages 64-79.
    5. Gerbert Hebbink & Laurien Berkvens & Maurice Bun & Henk van Kerkhoff & Juho Koistinen & Guido Schotten & Ad Stokman, 2018. "The price of transition: an analysis of the economic implications of carbon taxing," DNB Occasional Studies 1608, Netherlands Central Bank, Research Department.
    6. repec:agr:journl:v:6(595)(supplement):y:2014:i:6(595)(supplement):p:295-309 is not listed on IDEAS
    7. repec:hhs:bofitp:2013_018 is not listed on IDEAS
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    9. K. Benkovskis & B. Bluhm & E. Bobeica & C. Osbat & S. Zeugner, 2020. "What drives export market shares? It depends! An empirical analysis using Bayesian model averaging," Empirical Economics, Springer, vol. 59(2), pages 817-869, August.
    10. Osbat, Chiara & Zollino, Francesco & Aiello, Giovanni & Bluhm, Benjamin & Buelens, Christian & Cavallini, Flavia & Joseph, Andreas & Leonte, Alexandru & Lommatzsch, Kirsten & Momchilov, Georgi & Giord, 2015. "Compendium on the diagnostic toolkit for competitiveness," Occasional Paper Series 163, European Central Bank.
    11. Doris Ritzberger-Grünwald & Josef Schreiner & Julia Wörz, 2017. "Competitiveness of CESEE EU Member States: recent trends and prospects," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/17, pages 31-41.
    12. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    13. repec:wsr:wpaper:y:2019:i:193 is not listed on IDEAS
    14. Paweł Gajewski & Grzegorz Tchorek, 2017. "What drives export performance of firms in Eastern and Western Poland?," European Planning Studies, Taylor & Francis Journals, vol. 25(12), pages 2250-2271, December.
    15. Sulthon Sjahril Sabaruddin & Hartanti Nugrahaningsih, 2013. "Assessing Indonesia-Chile bilateral trade opportunities: A revealed comparative advantage approach," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(1), pages 45-56, April.
    16. Fischer, Christoph & Hossfeld, Oliver, 2014. "A consistent set of multilateral productivity approach-based indicators of price competitiveness – Results for Pacific Rim economies," Journal of International Money and Finance, Elsevier, vol. 49(PA), pages 152-169.
    17. Serhiy Moroz & Khabibullo Pirmatov & Elena Horska & Ludmila Nagyova & Zuzana Polakova, 2017. "The Effect of Selected Economic Indicators on Export of Goods of Regions of Ukraine," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 141-150.
    18. International Monetary Fund, 2016. "Argentina: Selected Issues," IMF Staff Country Reports 2016/347, International Monetary Fund.
    19. Jie Wu & Hongxin Zhao, 2015. "The Dual Effects of State Ownership on Export Activities of Emerging Market Firms: An Inducement–Constraint Perspective," Management International Review, Springer, vol. 55(3), pages 421-451, June.
    20. Ana-Maria CAZACU (BANCU), 2014. "Romania’s external competitiveness. A macro approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special), pages 295-309, June.
    21. Benkovskis, Konstantins & Wörz, Julia, 2018. "What drives the market share changes? Price versus non-price factors," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 9-29.
    22. Xingye Zhou & Helian Xu, 2024. "Emissions Reduction Target Plan and Export Product Quality: Evidence from China’s 11th Five-Year Plan," Sustainability, MDPI, vol. 16(4), pages 1-21, February.
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    More about this item

    Keywords

    emerging countries; non-price competitiveness; quality; relative export price;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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