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Trade—The Engine of Growth in East Asia$
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Peter C. Y. Chow and Mitchell H. Kellman

Print publication date: 1993

Print ISBN-13: 9780195078954

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195078954.001.0001

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The Sources of Export Growth

The Sources of Export Growth

(p.24) 3 The Sources of Export Growth
Trade—The Engine of Growth in East Asia

Peter C. Y. Chow

Mitchell H. Kellman

Oxford University Press

To evaluate NICs' success with respect to product and market choices, this chapter traces the sources of their export growth. The rapid penetration of NIC manufactures in the OECD import markets, especially in the U.S. and Japanese markets is examined including the possible reasons for these increases in world (OECD) shares over time. The analytical tool utilized is the constant market share (CMS) analysis to assess the sources of export growth by differentiating the market effect, the commodity composition effect, and the competitiveness effect. Through this analysis, it enables to separate the effects of external market environmental forces from internal (supply) factors, leading to changes in international competitiveness. The discussion of the growth of market shares is divided into three subperiods: the “take off” period of 1965–1973, the “recession” period of 1973–1982, and the recent developments that occurred in the period of 1982–1987.

Keywords:   NICs, export growth, NIC manufactures, OECD import markets, U.S., Japanese markets, CMS, market effect, commodity composition effect, competitiveness effect

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