Shifting international competitiveness: An analysis of market share in manufacturing industries in Japan, Korea, Taiwan and the USA

In the present study we conduct constant market share analysis of the imports and apparent consumption of the manufacturing industries of four major economies-Korea, Japan, Taiwan and the USA. Additionally, the current study disaggregates import penetration in manufacturing, including sectors with relatively high technological requirements. Statistical tests of the significance of changes in import penetration in manufacturing industries are also conducted. The real growth of exports and apparent consumption in the two largest OECD markets is decomposed into: (i) the commodity composition effect; and (ii) the competitiveness effect. Finally, we examine the significance of trade policy for changes in import penetration in Japan and the USA.