Premium
Summary Measure for Price and Non‐price Competitiveness for ASEAN +3
Author(s) -
Beņkovskis Konstantīns,
Wörz Julia
Publication year - 2015
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12053
Subject(s) - price index , economics , measure (data warehouse) , price level , competitor analysis , producer price index , quality (philosophy) , relative price , mid price , econometrics , index (typography) , microeconomics , monetary economics , computer science , database , world wide web , philosophy , management , epistemology
In this paper we apply a comprehensive measure that allows us to distinguish price and non‐price aspects of competitiveness. Our measure is computationally demanding but has the advantage of building on a single data source of highly disaggregated trade data. We extend the methodology pioneered by F eenstra (1994), and Broda and W einstein (2006), and construct an export price index that adjusts for changes in the set of competitors (variety) and changes in non‐price factors (quality in a broad sense) for six ASEAN members (the P hilippines, I ndonesia, M alaysia, S ingapore, T hailand and V ietnam) plus C hina, J apan and Korea. Based on trade data from UN COMTRADE at the Harmonized System six‐digit level over the period 2000−2011, we find notable differences between price and non‐price competitiveness across markets. C hina and V ietnam show huge gains in international competitiveness due to non‐price factors, while we observe some deterioration in the non‐price competitiveness of J apan and S ingapore. However, these relative developments do not reflect the existing differences in the absolute levels of the quality of exported goods by those countries.