Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness

Carlin, Wendy; Glyn, Andrew; Reenen, John Van

doi:10.1111/1468-0297.00592

Cited by 138 publications

(76 citation statements)

References 28 publications

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“…This is somewhat surprising as we would expect them to be able to innovate more and because nonprice competition is more relevant in these sectors. Nonetheless, a similar result for R&Dintensive sectors was found in Carlin et al (2001) using OECD sector-level data. Of course, R&D intensity is measured in a rather crude way at the 2-digit NACE level, while typically R&D tends to be concentrated among a few large firms.…”

Section: B Heterogeneity In the Sensitivity Of Exports With Respect supporting

confidence: 82%

How Do Exporters React to Changes in Cost Competitiveness?

2016

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Various international institutions such as the European Commission, the ECB and the OECD often use unit labour costs as a measure of international competitiveness. The goal of this paper was to examine how well this measure is related to international export performance at the firm level. To this end, we use Belgian firm‐level data for the period 1999 to 2010 to analyse the impact of unit labour costs on exports. We find an estimated elasticity of the intensive margin of exports with respect to unit labour costs between −0.2 and −0.4. This elasticity varies between sectors and between firms, with more labour‐intensive firms having a higher elasticity. The microdata also enable us to analyse the impact of unit labour costs on the extensive margin. Our results show that higher unit labour costs reduce the probability of starting to export for non‐exporters and increase the probability of exporters stopping. While our results show that unit labour costs have an impact on the intensive margin and extensive margin of firm‐level exports, the effect is rather low, suggesting that pass‐through of costs into prices is limited. The latter is consistent with recent trade models emphasising that not only relative costs, but also demand factors such as quality and taste matter for explaining firm‐level exports.

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Section: B Heterogeneity In the Sensitivity Of Exports With Respect supporting

confidence: 82%

How Do Exporters React to Changes in Cost Competitiveness?

2016

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“…7. Namely, Carlin, Glyn, and Van Reenen (2001) find that relative unit labour cost terms are jointly highly significant and yield a highly significant and negative long-run elasticity within OECD countries over a period of more than 20 years. 8.…”

Section: Disclosure Statementmentioning

confidence: 91%

Determinants of manufacturing industry exports in European Union member states: a panel data analysis

Sertić

Vučković

Perić

2015

Economic Research-Ekonomska Istraživanja

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This paper aims to provide analysis on the determinants of export performance on the extensive data-set of the 27 European Union member states' total manufacturing and high tech manufacturing industry. Hence, this paper adds to the existing empirical work by specifying an export performance equation not only as a function of income and price, as is traditionally done, but also industrial production and labour cost. For that purpose, dynamic panel data models are estimated by utilising the system GMM estimator for the period from 2000 to 2011. The obtained results indicate that both industrial production and domestic demand have a positive and statistically significant impact on total and high tech manufacturing exports. On the other hand, it is proven that foreign demand also has an impact on total manufacturing exports. Thus, the paper's contribution is reflected in the acknowledgement that a stable macroeconomic environment (contained in the significance of a dummy variable for the economic crisis in both models), boosting production capacity and domestic demand, is essential for better export performance and the competitiveness of the manufacturing industry in an increasingly competitive global economic climate. Finally, from the perspective of policy-making, the paper concludes that recovery in the manufacturing industry could be the much needed push from crisis to economic development.

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“…Hence the use of the initial RCA variable to capture the individual characteristics of products. Analyses that utilise such variables must normally work at much higher levels of aggregation; for example,Carlin et al (2001) for OECD countries focus on changes in market share at the level of 12 divisions of manufacturing.…”

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confidence: 99%

ASEAN and China: Export Rivals or Partners in Regional Growth?

Holst

Weiss

2004

World Economy

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Rivalry in trade between China and its regional neighbours in ASEAN has become a major preoccupation for many regional policy‐makers. For these reasons, strengthening the basis of empirical evidence on regional trade relations is especially important, and this paper does so in two ways. Using very detailed historical trade data, we combine econometric and trade flow analysis to elucidate patterns of export competition and underlying comparative advantage for ASEAN and China. Our findings indicate that the potential exists for both export rivalry and more extensive trade complementarity, but so do many challenges for policy makers who seek to mitigate adjustment costs and facilitate long term efficiency. Our econometric results indicate that, in the short run at least, ASEAN and China are experiencing intensified export competition in prominent third markets such as Japan and the US. More extensive trade flow analysis reveals, however, that in the long run globalisation can accommodate export growth by all the economies of East Asia, if aggregate growth can be sustained to facilitate the structural adjustments necessary for an optimal regional division of labour.

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Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness

Cited by 138 publications

References 28 publications

How Do Exporters React to Changes in Cost Competitiveness?

How Do Exporters React to Changes in Cost Competitiveness?

Determinants of manufacturing industry exports in European Union member states: a panel data analysis

ASEAN and China: Export Rivals or Partners in Regional Growth?

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