Abstract
This article presents a framework for measuring, illustrating and comparing industry export competitiveness that takes into account (i) industry specialization, (ii) industry export growth rate and (iii) relative industry size. We apply the framework to a data set of 97 different industries from China over a 5-year period (2001–2005). According to our results, over 70 per cent of Chinese industries are ‘dynamic’, meaning that their export growth is higher than the world average export growth. Almost 50 per cent of the Chinese industries examined are competitive in global markets, with 20–25 per cent of the world export market share in their respective industry. Our results also suggest that the more an industry becomes specialized, the higher its world market share in terms of exports. The framework developed is innovative in its conceptualization and can be used in a variety of contexts to model industry export competitiveness.
Similar content being viewed by others
References
Alessandrini, M., Fattouh, B. and Scaramozzino, P. (2007) The changing pattern of foreign trade specialization in Indian manufacturing. Oxford Review of Economic Policy 23 (2): 270–291.
Alon, I. and McIntyre, J. (eds.) (2008) The Globalization of Chinese Enterprises. New York: Palgrave Macmillan.
Amador, J., Cabral, S. and Maria, J.R. (2006) Relative export structures and vertical specialization: A simple cross-country index. Economic Bulletin (Winter): 47–66.
Balassa, B. (1965) Trade liberalization and ‘revealed’ comparative advantage. Manchester School of Economic and Social Studies 33: 99–123.
Balassa, B. and Bauwens, L. (1987) Intra-industry specialisation in a multi-country and multi-industry framework. Economic Journal 97 (388): 923–939.
Baldwin, J. and Gu, W. (2004) Trade liberalization: Export-market participation, productivity growth and innovation. Oxford Review of Economic Policy 20 (3): 372–392.
Buckley, P., Pass, C. and Prescott, K. (1992) Servicing International Markets. Oxford: Blackwell.
Contractor, F.J., Hsu, C.-C. and Kundu, S.K. (2005) Explaining export performance: A comparative study of international new ventures in Indian and Taiwanese software industry. Management International Review 45 (3): 83–110.
Cooper, J. (2006) Can Russia compete in the global economy? Eurasian Geography and Economics 47 (4): 407–425.
Dunning, J.H. (1993) Multinational Enterprises and the Global Economy. Wokingham: Addison-Wesley.
Durand, M. and Giorno, C. (1987) Indicators of international competitiveness: Conceptual aspects and evaluation. OECD Economic Studies 9 (Autumn): 147–182.
Eckhard, S. (2006) International competitiveness and comparative advantage: A survey and a proposal for measurement. Journal of Industry, Competition and Trade 6 (2): 137–159.
Enright, M., Scott, E. and Leung, E. (1999) Hong Kong’s Competitiveness Beyond the Asian Crisis: An Overview. Research Department, HKTDC, Hong Kong. Working Paper.
Fetscherin, M. and Alon, I. (2007) Measuring global industry competitiveness using the specialization-growth matrix: The case of China. Presented at the Euro-Asia Management Studies Association (EAMSA) Annual Conference on The Rise of the Asian Multinational Firm: Implications for Management, Competition and Cooperation; 29–30 November, Leeds, UK.
Greene, M., Dihel, N., Kowalski, P. and Lippoldt, D. (2006) China's trade and growth: Impact on selected OECD countries. OECD Publishing. OECD Trade Policy Working Paper 44.
Heckscher, E. (1949) The effects of foreign trade on the distribution of income. In: H. Ellis and L. Metzler (eds.) Readings in the Theory of International Trade. Homewood: Irwin.
Hinloopen, J. and Van Marrewijk, C. (2001) On the empirical distribution of the Balassa index. Weltwirtschaftliches Archiv 137 (1): 1–35.
Hoskisson, R. and Yiu, D. (2003) The dynamics of knowledge regimes: Technology, culture and competitiveness in the USA and Japan. Asia Pacific Journal of Management 20 (2): 283–284.
Institute for Management Development. (2008) The world competitiveness yearbook, http://www.imd.ch/research/publications/wcy/World-Competitiveness-Yearbook-2008-Results.cfm, accessed 20 September 2008.
Jones, G. (1994) Big business, management and competitiveness in twentieth-century Britain. Japan Business History Review 29: 207–256.
Kelleher, J. (2003) The evolution of trade patterns. Unpublished Doctoral thesis. Pennsylvania State University.
Khun, C. and Xing, Y. (2007) Foreign direct investment and China's intra-industry trade, http://ssrn.com/abstract=976236, accessed 20 September 2008.
Krugman, P. (1994) Competitiveness: A dangerous obsession. Foreign Affairs 73 (2): 28–44.
Liu, X., Wang, C. and Wei, Y. (2001) Causal links between foreign direct investment and trade in China. China Economic Review (12): 190–202.
Makhija, M.V., Kim, K. and Williamson, S.D. (1997) Measuring globalization of industries using a national industry approach: Empirical evidence across five countries and over time. Journal of International Business Studies 28 (4): 679–710.
Mandeng, O.J. (1991) International competitiveness and specialization. CEPAL Review 45: 39–52.
Mitchell, W., Shaver, J.M. and Yeung, B. (1993) Performance following changes in international presence in domestic and transition industries. Journal of International Business Studies 24 (4): 647–670.
Murtha, T.P. and Lenway, S.A. (1994) Country capability and the strategic state. Strategic Management Journal 15: 113–129.
Ohlin, B. (1933) International and Interregional Trade. Cambridge, MA: Harvard Economic Studies.
Passemard, D. and Kleiner, B.H. (2000) Competitive advantage in global industries. Management Research News 23 (7/8): 111–117.
Peng, M.W., Lee, S.H. and Tan, J.J. (2001) The keiretsu in Asia. Journal of International Management 7: 253–276.
Porter, M.E. (1990) The competitive advantage of nations. Harvard Business Review 68 (3): 189–192.
Ricardo, D. (1871/1996) On the Principles of Political Economy and Taxation. New York: Prometheus.
Richardson, D. and Zhang, C. (1999) Revealing Comparative Advantage: Chaotic or Coherent Patterns Across Time and Sector and U.S. Trading Partner? National Bureau of Economics Working Paper 7212.
Roth, K. and Morrison, A.J. (1992) Implementing global strategy: Characteristics of global subsidiary mandates. Journal of International Business Studies 23 (4): 715–735.
Shorrocks, A.F. (1978) Income inequality and income mobility. Journal of Economic Theory 19: 376–393.
Siggel, E. and Cockburn, J. (1995) International Competitiveness and its Sources: A Method of Development Policy Analysis. Concordia University Department of Economics. Discussion Paper 9517.
Smith, A. (1776) The Wealth of Nations. London: Penguin.
Toncar, M. and Fetscherin, M. (2007) U.S. consumer perceptions of automobiles from emerging markets. Journal of International Business and Economics 7 (3): 162–167.
Tukey, J.W. (1953) The Problem of Multiple Comparisons. Princeton: Princeton University.
Uysal, M., Chen, J.S. and Williams, D.R. (2000) Increasing state market share through regional positioning. Tourism Management 21: 89–96.
Van Assche, A., Hong, C. and Slootmaekers, V. (2008) China's International Competitiveness. LICOS – Centre for Institutions and Economic Performance: K.U.Leuven. LICOS Discussion Papers 20508.
Vernon, R. (1966) International trade and international investment in the product lifecycle. Quarterly Journal of Economics 81 (2): 190–207.
World Economic Forum. (2008) Global Competitiveness Report 2007–2008, http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm, accessed 20 September 2008.
World Trade Organization. (2007) International trade statistics, www.wto.org/english/res_e/statis_e/its2007_e/its2007_e.pdf, accessed 11 November 2007.
Xing, Y. (2007) Foreign direct investment and China's bilateral intra-industry trade with Japan and the US. Journal of Asian Economics 18 (4): 685–700.
Acknowledgements
We would like to thank the Alexander von Humboldt Foundation for sponsoring parts of this research.
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
See Table A1.
Rights and permissions
About this article
Cite this article
Fetscherin, M., Alon, I. & Johnson, J. Assessing the export competitiveness of Chinese industries. Asian Bus Manage 9, 401–424 (2010). https://doi.org/10.1057/abm.2010.13
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/abm.2010.13