Abstract
This paper examines the constant market-shares (CMS) analysis of a country's export growth within the context of index number theory and is aimed at finding a satisfactory solution to the problems encountered by the traditional CMS decomposition procedures. The last ones perform the task of disentangling the variations of each accounting factor only partially, because they are based on linear approximations to non-linear functions. The residual “interaction” term left out in the current CMS analyses does not appear if a more flexible CMS decomposition based on the so-called superlative index numbers is used. Moreover, the discussion of the basic identities has clarified the difference in meaning and levels of the accounting components between the alternative versions of CMS analysis.
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