Measuring Export Competitiveness
Change in Export Market Share
Slideshow and Timeline Above
The change in a region’s exports in relation to changes in global exports. If global exports rise and a region’s exports rise by a similar amount, there is no change in its export competitiveness. But if the region’s exports rise more than global exports (green area), the region is becoming more competitive. Click on a region link in the slideshow and follow a region in the timeline as it gains or looses export competitiveness.
How to use the MEC Database
To understand what's behind the change in a country's global export market share, please start with the Visualize Export Growth tab and follow the market share decomposition throughout the site. Learn more at the How to use the MEC Database section.
About Measuring Export Competitiveness
Why Measure Export Competitiveness
How can national policymakers and business leaders know whether and why their exports are competitive and by how much? One way is simply to look at the growth of exports. That says something about whether they are competitive but nothing about why. Are they in expanding markets? Are they in burgeoning sectors? Are their trade, industrial, and other domestic policies fueling or suffocating exports? The traditional measure of a country’s export competitiveness is the real effective exchange rate, as a reflection of what the country pays for imports and what it receives for exports, adjusting for import barriers and export subsidies. Another common measure is the change in a country’s exports in relation to changes in global exports. If global exports rise and a country’s exports rise by a similar amount, there is no change in its export competitiveness. But if the country’s exports rise more, it’s becoming more competitive, and if less, it’s becoming less competitive. That much is obvious, but what’s behind a change in the country’s export share? Thanks to trade data that are very detailed (5,300 sectors)—and internationally comparable (228 countries and territories)—it is possible to see whether a country is in expanding (or contracting) geographical markets and whether it is in expanding (or contracting) products and sectors. It is also possible to see whether export prices and volumes are driving the change in the country’s share in global exports.
Demand and Supply Side Shocks Recent trade downturn is not only associated with a natural phasing out of the impact of lower trade costs worldwide, but it is also strongly influenced by a negative demand shock in the euro area and by the reorientation of growth towards domestic demand in China.
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