Konstantins Benkovskis, Julia Woerz, 24 February 2015

There is no single replicable and comprehensive indicator of competitiveness that can be applied to various entities. In this column, the authors propose a novel decomposition of market share growth that captures non-price factors, such as quality or tastes. The findings imply that relying solely on price factors to determine a country’s competiveness might be misleading. For instance, central for boosting China’s presence in the global market were improvements in non-price factors. The role played by the exchange rate has been less important. 

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