Export competition among China and Asean in the U.S. market : application of market share models

摘要

In this paper, market share models were estimated using the panel data regression technique. The relative price variable was adjusted by movement in exchange rate and a quality index (indicated by the ratio of high quality proportion of the products to lower quality one) is incorporated into the model. The models were used for evaluating the level of competition among China and ASEAN in the US market. The empirical results showed that the panel data estimations provided a better goodness-of-fit than the separate country regressions. The analysis of export share elasticities with respect to relative prices suggests a reasonably strong competition for export share in the US import market among China, Malaysia and Singapore. In contrast, the level of competition within the same market niche was either small in magnitude, as in the case of Indonesia, or insignificant, as in the case of Thailand. Quality or product composition was shown to be a significant determinant of changes in country i’s export share.