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Thanagopal, T. Analyzing BRIC Competitiveness in the EU-14, Japan, US and Norway. Applied Economics Quarterly, 61(3), 229-260.
Thanagopal, Thannaletchimy "Analyzing BRIC Competitiveness in the EU-14, Japan, US and Norway" Applied Economics Quarterly 61.3, , 229-260.
Thanagopal, Thannaletchimy: Analyzing BRIC Competitiveness in the EU-14, Japan, US and Norway, in: Applied Economics Quarterly, vol. 61, iss. 3, 229-260, [online]


Analyzing BRIC Competitiveness in the EU-14, Japan, US and Norway

Thanagopal, Thannaletchimy

Applied Economics Quarterly, Vol. 61 (2015), Iss. 3 : pp. 229–260

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Department of International and Development Economics, Paris School of Economics – Paris I Pantheon Sorbonne University, 106 –112, Boulevard de l’Hôpital, 75013 Paris, France


Constant Market Shares Analysis is useful in explaining the gain in export market shares of a country through two terms – structural and competitive effect. However, the model fails to define the type of competitiveness – whether a country is competitive in terms of prices (price competitiveness) or in terms of non-price factors such as quality and variety (non-price competitiveness). This article attempts to improve this analysis by estimating individual price and non-price competitive effect using an export share equation. Our article is original in representing product quality with a ‘knowledge’ variable that reflects the technological know-how of the country including knowledge spillovers from other countries and industries. Using a highly disaggregated industrial trade data over a period of 16 years (1996 to 2011), we find evidence of competitive effects in BRIC exports towards major industrialized countries namely EU-14 (excluding Luxembourg), Japan, United States and Norway. We also find that this gain in export market share is largely attributed to better price competition rather than non-price competition. The industrial results, however, indicate the presence of non-price competitiveness in selected homogeneous product sectors during this period, suggesting the beginning of a shift in BRIC export competitiveness.

JEL Classification: F12, F13, F14, F49