A new constant market share competitiveness index

Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for measuring the export competitiveness of a country relative to other countries or regions of trade for goods and services. Typically, export growth is attributed to growth in the country’s export competitive...

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Main Authors: Abdul Jalil, Mohd Aisha Nuddin, Abdul Karim, Mohd Azhar, Gan, V. B. Y., Khalifah, N. A.
Format: Article
Language:English
Published: Institute for Mathematical Research, Universiti Putra Malaysia 2018
Online Access:http://psasir.upm.edu.my/id/eprint/60251/
http://psasir.upm.edu.my/id/eprint/60251/1/1.%20aishanudin.pdf
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author Abdul Jalil, Mohd Aisha Nuddin
Abdul Karim, Mohd Azhar
Gan, V. B. Y.
Khalifah, N. A.
author_facet Abdul Jalil, Mohd Aisha Nuddin
Abdul Karim, Mohd Azhar
Gan, V. B. Y.
Khalifah, N. A.
author_sort Abdul Jalil, Mohd Aisha Nuddin
building UPM Institutional Repository
collection Online Access
description Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for measuring the export competitiveness of a country relative to other countries or regions of trade for goods and services. Typically, export growth is attributed to growth in the country’s export competitiveness and also to the growth effect of the market itself. However, CMSA measurement is prone to a number of methodological short comings which stems from the CMS identities used in the analysis. Namely, the discrete approximation of continuously changing trade patterns, the interaction effects term residual from the CMS identity decomposition and the arbitrary choice of weights attached to base periods. This paper addresses some of the short comings of the classic CMSA approach. Within a geometric framework we reexamine the CMS decomposition and propose a new net-share approach that is easier to implement and interpret. For researchers and policy makers, this methodology presents a simpler but more consistent measurement for more accurate CMS measurement and interpretations of changing trade patterns.
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spelling upm-602512018-05-18T03:43:29Z http://psasir.upm.edu.my/id/eprint/60251/ A new constant market share competitiveness index Abdul Jalil, Mohd Aisha Nuddin Abdul Karim, Mohd Azhar Gan, V. B. Y. Khalifah, N. A. Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for measuring the export competitiveness of a country relative to other countries or regions of trade for goods and services. Typically, export growth is attributed to growth in the country’s export competitiveness and also to the growth effect of the market itself. However, CMSA measurement is prone to a number of methodological short comings which stems from the CMS identities used in the analysis. Namely, the discrete approximation of continuously changing trade patterns, the interaction effects term residual from the CMS identity decomposition and the arbitrary choice of weights attached to base periods. This paper addresses some of the short comings of the classic CMSA approach. Within a geometric framework we reexamine the CMS decomposition and propose a new net-share approach that is easier to implement and interpret. For researchers and policy makers, this methodology presents a simpler but more consistent measurement for more accurate CMS measurement and interpretations of changing trade patterns. Institute for Mathematical Research, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/60251/1/1.%20aishanudin.pdf Abdul Jalil, Mohd Aisha Nuddin and Abdul Karim, Mohd Azhar and Gan, V. B. Y. and Khalifah, N. A. (2018) A new constant market share competitiveness index. Malaysian Journal of Mathematical Sciences, 12 (1). pp. 1-23. ISSN 1823-8343; ESSN: 2289-750X http://einspem.upm.edu.my/journal/fullpaper/vol12no1/1.%20aishanudin.pdf
spellingShingle Abdul Jalil, Mohd Aisha Nuddin
Abdul Karim, Mohd Azhar
Gan, V. B. Y.
Khalifah, N. A.
A new constant market share competitiveness index
title A new constant market share competitiveness index
title_full A new constant market share competitiveness index
title_fullStr A new constant market share competitiveness index
title_full_unstemmed A new constant market share competitiveness index
title_short A new constant market share competitiveness index
title_sort new constant market share competitiveness index
url http://psasir.upm.edu.my/id/eprint/60251/
http://psasir.upm.edu.my/id/eprint/60251/
http://psasir.upm.edu.my/id/eprint/60251/1/1.%20aishanudin.pdf