What Explains Germany’s Rebounding Export Market Share?

February 1, 2007

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Format: Chicago

Frederick L Joutz, and Stephan Danninger. What Explains Germany’s Rebounding Export Market Share?, (USA: International Monetary Fund, 2007) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Germany's export market share increased since 2000, while most industrial countries experienced declines. This study explores four explanations and evaluates their empirical contributions: (i) improved cost competitiveness, (ii) ties to fast growing trading partners, (iii) increased demand for capital goods, and (iv) regionalized production of goods (e.g. offshoring). An export model is estimated covering the period 1993-2005. The dominant factors explaining the increase in market share are trade relationships with fast growing countries and regionalized production in the export sector. Improved cost competitiveness had a comparatively smaller impact. There is no conclusive evidence of increased demand for capital goods.

Subject: Export performance, Exports, Imports, International trade, Labor, Labor costs, Vector autoregression, Wage bargaining

Keywords: Cost competitiveness, Export, Export demand, Export demand model, Export growth, Export market share, Export model, Export performance, Exports, Global, Imports, Labor costs, Market share, Wage bargaining, WP

Publication Details

Pages:

49
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/024
Stock No:

WPIEA2007024
ISBN:

9781451865882
ISSN:

1018-5941

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