at 12:30

Konstantins Benkovskis (Latvijas Banka) and Julia Wörz (OeNB)​:
What Drives the Market Share Changes? Price versus Non-Price Factors
A seminar on non-price competitiveness in emerging countries

The paper proposes the theoretical framework to explain gains and losses in export market shares by their price and non-price determinants. Starting from a demand-side model à la Armington (1969) we relax several restrictive assumptions in order to evaluate the contribution of unobservable changes in taste or quality, and take into account differences in elasticities of substitution across product markets. Using highly disaggregated trade data from UN Comtrade our empirical analysis for the major world exporters – G7 and BRIC countries – reveals the dominating role of non-price factors in explaining competitive gains of BRIC countries and the concurrent decline of the G7’s share in world exports.
JEL classification: C43, F12, F14, L15
Keywords: export market share decomposition, non-price competitiveness, real effective exchange rate

BOFIT seminars

The seminars are open to all economists interested in the subject areas covered.
You need to pre-register for the seminar with
Ms India Roland (firstname.lastname@bof.fi, phone +358 10 831 2268).

Seminar will be held at Rauhankatu 19, 3rd floor seminar room (arrive at the Bank's Rauhankatu 19 entrance, from where you will be escorted to the BOFIT seminar room).