Return to search

Estimating price and quality elasticities of international trade / Estimer le prix et la qualité de l'élasticité du commerce international

Estimer le prix et la qualité de l'élasticité du commerce international. / This thesis is a compilation of three essays that estimate the ‘true’ trade price elasticity of demand while adjusting for the effect of quality in the trade models. Quality in this thesis is introduced via our own proxy for quality known as ‘knowledge’. This proxy takes into account not only direct expenditures (and hence stocks) spent on research and development but also indirect expenditures (and stocks) through positive externalities originating from innovation efforts by other countries and other industries. In addition, the main trade database used in this thesis is the WIOD (World Input-Output Database) which provides bilateral trade flows, at the industrial level for 35 industries in manufacturing and services based on the ISIC Rev. 2 (International Standard Industry Classification Revision 2) over a period of 17 years (from 1995 to 2011). The first essay, “Analyzing BRIC Competitiveness in EU-14, Japan, US and Norway” looks at the competitiveness of the emerging nations notably the BRICs (Brazil, Russia, India and China) compared to the EU-14 countries (excluding Luxembourg), Japan, the United States and Norway in 15 distinct manufacturing goods industries over a period of 16 years (1996 to 2011). We use the CMSA (Constant Market Share Analysis) econometrically to dissect the competitive effect of the BRICs in terms of price and quality effects. The CMSA is useful in explaining the gain in export market shares of a country through two terms - the structural effect and the 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 essay attempts to improve this analysis by estimating individual price and non-price competitive effects using an export market share equation. We find evidence of the competitive effect in BRIC exports towards major industrialized countries namely EU-14 (excluding Luxembourg), Japan, United States and Norway. We also find that the gain in BRIC 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 industries during this period, suggesting the beginning of a shift in BRIC export competitiveness. […]

Identiferoai:union.ndltd.org:theses.fr/2014PA010070
Date05 December 2014
CreatorsThanagopal, Thannaletchimy
ContributorsParis 1, Zagamé, Paul
Source SetsDépôt national des thèses électroniques françaises
LanguageEnglish
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation, Text

Page generated in 0.0027 seconds