A new constant market share competitiveness index

A. J. Aisha Nuddin, A. K.M. Azhar, V. B.Y. Gan, Noor Aini Khalifah

Research output: Contribution to journalArticle

Abstract

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.

Original languageEnglish
Pages (from-to)1-23
Number of pages23
JournalMalaysian Journal of Mathematical Sciences
Volume12
Issue number1
Publication statusPublished - 1 Jan 2018

Fingerprint

Competitiveness
Decompose
Interaction Effects
Discrete Approximation
Market
Methodology
Arbitrary
Term
Trade

Keywords

  • Competitiveness index
  • Constant market share analysis
  • Export competitiveness

ASJC Scopus subject areas

  • Mathematics(all)

Cite this

Aisha Nuddin, A. J., Azhar, A. K. M., Gan, V. B. Y., & Khalifah, N. A. (2018). A new constant market share competitiveness index. Malaysian Journal of Mathematical Sciences, 12(1), 1-23.

A new constant market share competitiveness index. / Aisha Nuddin, A. J.; Azhar, A. K.M.; Gan, V. B.Y.; Khalifah, Noor Aini.

In: Malaysian Journal of Mathematical Sciences, Vol. 12, No. 1, 01.01.2018, p. 1-23.

Research output: Contribution to journalArticle

Aisha Nuddin, AJ, Azhar, AKM, Gan, VBY & Khalifah, NA 2018, 'A new constant market share competitiveness index', Malaysian Journal of Mathematical Sciences, vol. 12, no. 1, pp. 1-23.
Aisha Nuddin, A. J. ; Azhar, A. K.M. ; Gan, V. B.Y. ; Khalifah, Noor Aini. / A new constant market share competitiveness index. In: Malaysian Journal of Mathematical Sciences. 2018 ; Vol. 12, No. 1. pp. 1-23.
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