Constant Market Share Method Research Articles

THE MODEL OF ASSESSMENT OF GOODS EXPORTS OF UKRAINE TO THE WORLD INTEGRATION ASSOCIATIONS

Foreign trade is an important factor of economic growth and development of open economies. At the same time, the analysis of the state of foreign trade operations is becoming methodologically more complex due to the increase in the number of indicators used and the appearance of new ones. They allow not only to examine the effectiveness of the state trade policy, the set of goods and trade partners, but also to get an idea of the structure of the economy, the level of its development and competitiveness, as well as to assess the quality of the export and import baskets from the point of view of economic growth prospects. Therefore, it is advisable to use models of commodity export valuation, which determines the relevance of the chosen topic. The subject of the study is the methods and models of commodity export evaluation. The purpose of the article is the formation of a model for the evaluation of Ukraine's commodity exports to the integration associations of the world and its approval. Methodology. The theoretical and methodological basis of the conducted research is the dialectical method of cognition, the principles of system analysis and synthesis, statistical processing of information. The methods of structural dynamics were used for the analysis of statistical indicators of commodity exports for 2016-2020; the method of constant market share – for the evaluation of changes in commodity exports of Ukraine for the period under consideration; the method of scientific abstraction is used for the generalization of the obtained results and the formation of conclusions; the graphic method – for the visual presentation of the obtained research results. Results. The article proposes a model for assessing Ukraine's commodity exports to the world integration associations, the main component of which is the constant market share method (CMS analysis). This model is easy to use and allows a qualitative assessment of changes in Ukraine's commodity exports. Approval of the model and assessment of changes in commodity exports of Ukraine was carried out on the international statistical database UNCTADstat for 2016-2020. The data are aggregated into groups according to the Standard International Trade Classification (SITC). The following trading partners have been selected for the CMS analysis: EU-27, ASEAN+3, CIS and REST OF THE WORLD. The obtained results make it possible to assess the state of Ukraine's commodity exports and the level of its competitiveness in foreign markets. Practical implications. The practical implications are related to the possibility of using the proposed model for the evaluation of commodity exports, using various options for the classification of goods and integration associations – partners of the exporting country. Value / originality. The originality lies in the development of a model for the assessment of Ukraine's commodity exports to the world integration associations based on the Constant Market Share (CMS) method, which allows to determine to what extent exports change with the growth of the competitiveness of the goods of the exporting country.

India's Look East To Act East: Did It Make A Difference?

The purpose of this paper is to investigate the export performance of India with ASEAN countries using the Constant Market Share method for the period 2001-2019. India's trade with ASEAN and its members is analyzed by using HS-2 digit data. The evaluation of India's export performance is based on the “market share effectnnnn”, “commodity composition effect”, and “commodity adaptation effect”. The results reveal that the increase in India's export performance stemmed mostly from a positive “market share effect” and least from the “commodity composition effect”. The “commodity adaptation effect” has improved during the same period. These findings lead us to conclude that India has an opportunity to find new trading partners within ASEAN and enhance its exports to those nations. It is through taking the benefits of the FTA, India can reduce its trade deficit.

COMPETITIVIDADE E INSERÇÃO DA SOJA BRASILEIRA NO MERCADO INTERNACIONAL

The objective of this paper is to analyze the degree of competitiveness and insertion of Brazilian soy in the foreign market, from 2008 to 2016, through the Symmetric Comparative Advantage Index (IVCRS), the Regional Orientation Index (IOR) and the Constant Market Share method (CMS). The results obtained through the IVCRS revealed that although the United States is the main exporter of the crop, the comparative advantage of Brazil and Argentina is greater today. The CMS model allowed us to identify the main sources of growth of Brazilian exports of the soy agroindustrial complex, where the competitiveness rates obtained significant values, increased from 20.38 to 63.67, indicating that the high rates of Brazilian exports are responsible for the competitiveness. Brazil to produce and export the product. The IOR revealed the main destinations of Brazilian exports of the soy complex. For soybeans, the strong trend of exports to China was remarkable. Soybean meal exports were pulverized and soybean oil exports decreased. It can be concluded that soy complex exports increased significantly due to the Brazilian competitiveness, but with the concentration in only one product, soybeans. Palavras-chave: IVCRS, IOR, Constant Market Share.

Export Competitiveness of Indian Oilseeds: The Method of Constant Market Share (CMS) with Special Reference to Groundnut

This research Paper examines the export competiveness of oilseeds. The main and huge production in agriculture is oilseeds which make India on the first number in Production of oilseeds in the world. Oilseeds compose one of the significant groups of cash crops in Indian agriculture. India has a proportional benefit in agriculture and there is a considerable potential in raising farm returns and employment by stepping up agro base exports. The constant market share (CONSTANT MARKET SHARE) study framework is used to decompose changes in India’s share of the worldwide market for goods export in to competitiveness and structural consequence over 2001-2017. The CONSTANT MARKET SHARE Method is universally used to observe empirically the country’s export performance. This paper is addressed to examine the regions export performance by applying CONSTANT MARKET SHARE Method.

The Export Performance of Indonesia’s Palm Oil in International Market

This study aims to analyze the performance of Indonesian exports to export destination countries in the international market. The subjects of this study are two Indonesian palm oil commodities: crude palm oil or CPO and processed palm oil or OPO (Other Palm Oil). There are four Indonesian palm oil markets in the international market, namely the Asian market, the European market, the African market, the American market, and the Australian market. The data used in this study is a time series from 1991 to 2016 and analyzed using the CMS (Constant Market Share) method. The CMS method explains the export growth performance in several components, which are the standard growth effect, the effect of product composition, the effect of market distribution, and the effect of competitiveness. The results showed that the performance of Indonesian CPO exports in the period 1991-2016 tended to decline compared to the growth of exports of all world products. Indonesian CPO is more competitive in the Asian market than the European market. The dynamics of Indonesian CPO exports in the African, American and Australian markets are quite good, but these three markets have not become the main destinations for Indonesian CPO exports. Indonesia's OPO export performance in the 1991-2016 period tended to increase compared to the growth in exports of all world products. Indonesian OPO in the Asian and African markets is more competitive than the European market. The dynamics of Indonesia's OPO exports on the American market and the Australian market are quite good, but these two markets have not become the main destinations for Indonesia's OPO market. Thus, Indonesia can maximize the performance of OPO exports when there is a rejection of Indonesian OPO in the international market.Keywords: CPO, constant market share (CMS), export, palm oil, performance

GENETICALLY MODIFIED ORGANISMS AND THEIR IMPACT ON INTERNATIONAL AGRICULTURAL TRADE: A CASE STUDY ON SOY

This paper discusses the introduction of genetically modified (GM) seeds in agriculture and their impact on the modus operandiof international trade of agricultural commodities. The central argument in this paper is that the commercial rejection by some markets, especially in the European Union, resulted in broad market share restructuring of the three largest international soy exporters: the United States, Brazil, and Argentina. These findings came as a result of trade flow analysis, taking into account the source and destination of soy in the soy trade using the quantitative Constant Market Share method. Taking into account that at the time of the study there were no legal trade barriers put up by the European Union, which was resistant to the use of Monsanto’s herbicide-tolerant soy (GTS-40-3-2), it is assumed that the effects resulting from its commercial rejection were due to demand factors and not for any official trade ban. It is concluded that technology adoption caused changes in factors that led to export growths. However, despite changes in market share, the globalization effect prevented exporters from incurring greater trade losses since they always had the option of moving their products to markets with lower levels of “hatred”.

Sources of export growth and development of manufacturing industry: empirical evidence from Croatia

The article quantifies the sources of manufacturing export growth in Croatia. The research objectives are achieved by applying the constant market share method (C.M.S.) and input–output model. While the C.M.S. method quantifies the factors which explain trends in manufacturing exports, the input–output method quantifies the impacts of manufacturing exports on other domestic sectors. The obtained results show that after the E.U. accession export performance of the Croatian manufacturing industry have substantially improved. The results indicate that a gain in competitiveness in the Croatian manufacturing industry was the most important factor which determined the increasing share of national companies in a period from 2013 to 2015. Besides the manufacturing industry, export growth indirectly contributes to better performance of all domestic producers included in the value added chain of exporters. Indirect effects are the most pronounced for agriculture, trade, transport and business services.

Analysis of Spain´s competitiveness in the European tomato market: An application of the Constant Market Share method

This paper presents a quantitative analysis of the competitiveness of Spanish tomato export compared with its major competitors in the European Union market countries (EU28). The methodological framework is implemented through Constant Market Share to analyze variations in exports, allowing the portion attributable to competitiveness and segregation into general or specific competitiveness to be quantified. This analysis was carried out with the 2005-2009 and 2010-2014 periods to see if there had been a recovery from the global financial and economic crisis of 2007 in the Spanish tomato trade. Before the global economic and financial crisis, Spain had a positive structural effect of exports which contributed significantly to the growth of tomato sales to the EU, but had a negative change in the volume of exports to the EU28, mainly due to the negative effect of the competitiveness component. According to the segregation effect of competitiveness, a marked general negative competitive effect was evident, that cannot be offset by the positive effect of specific competitiveness. Since 2010, Spain has experienced a positive change in the volume of its tomato exports to the EU28, the competitiveness component also being positive, due to positive investment of the component of general competitiveness and whose greatest contribution was the positive effect of specific competitiveness. Within the group of competitors, Spain is the only country supplying tomatoes to the EU28 that has experienced a positive change in volume when comparing business performance of 2010-2014 vs 2005-2009.

The Brazilian exports of labor-intensive goods in the 2000s: An analysis using the Constant Market Share Method

Abstract This paper aims at analyzing international trade in labor-intensive sectors in the 2000s, with a special reference to the Brazilian case. Therefore, we use the constant market share analysis to compare several countries’ export performance. It was observed that Asian countries emerged strengthened from this period. Brazil had a mediocre performance, losing market-share in global markets. Moreover, competition from Asian economies and even from the small Central American countries, such as Guatemala and El Salvador, has undermined the penetration of Brazilian exports in its major trade partners, which are North America and South America.

Export of Furniture Product from Malaysia: Market Prospects and Challenges

This study seeks to investigate the export competitiveness of Malaysian furniture product through the application of a collection of methods, which includes Revealed Comparative Advantage (RCA), Constant Market Share (CMS) and Shift Share. SITC 821, which represents the furniture product under the Standard International Trade Classification (SITC) for the period between 2000 and 2011, has been taken into consideration. The RCA method reveals that is an escalation in the countries competitive advantage of furniture product. The results from CMS method indicate that export gain of Malaysian furniture product is to a great extent a result of the size of the market as well as its competitive effect. Furthermore, CMS analysis also illustrates there has been significant improvements in the furniture industry throughout the given period which are Period I and II, Period and II and III and Period III and I. Additionally, shift share analysis shows that countries such as Brunei, Algeria, Norway, Lebanon and Korea are the major markets with the greatest potential. However, major challenges, in terms of competition, still exist mainly with Asian countries.

Mudanças na pauta das exportações agrícolas brasileiras

O trabalho visa contribuir para o debate sobre desindustrialização no Brasil, atribuída à apreciação cambial que, para vários autores, decorre do aumento das exportações agrícolas. Do emprego do método constant market share sobre informações de comércio exterior da FAO, para o período 1991-2003, chegou-se à conclusão que a exportação agrícola brasileira cresceu mais que o potencial, resultado de aumento expressivo da competitividade. Depois da mudança cambial, em 1999, parte da competitividade foi neutralizada pelo aumento da participação na pauta de produtos com demanda mundial em declínio. Da decomposição do valor exportado prevaleceu o efeito do aumento da quantidade, fato mais evidente depois da mudança cambial, porque o efeito preço foi negativo. Mesmo descontando o efeito da depreciação real do câmbio, a mudança nos preços internacionais foi desfavorável à agricultura brasileira. O efeito flexibilidade da pauta, negativo em todo o período, indica grande participação de produtos em desacordo com a lei geral da oferta, fato mais grave no período recente, quando a maior parte dos produtos com aumento do volume exportado estava com preço em baixa no mercado internacional. O declínio da exportação de manufaturados e o maior crescimento do comércio de produtos básicos indicam tendência à desindustrialização da agricultura.