What Explains Germany's Rebounding Export Market Share?

51 Pages Posted: 7 Feb 2007

See all articles by Frederick Joutz

Frederick Joutz

George Washington University

Stephan Danninger

International Monetary Fund (Research Department)

Multiple version iconThere are 3 versions of this paper

Date Written: February 2007

Abstract

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.

Keywords: Export markets, Germany, International trade, Economic models

JEL Classification: C22, F41

Suggested Citation

Joutz, Frederick and Danninger, Stephan, What Explains Germany's Rebounding Export Market Share? (February 2007). IMF Working Paper No. 07/24, Available at SSRN: https://ssrn.com/abstract=961754

Frederick Joutz (Contact Author)

George Washington University ( email )

710 21st Street NW
Washington, DC 20052
United States

Stephan Danninger

International Monetary Fund (Research Department) ( email )

700 19th Street, NW
Washington, DC 20431
United States

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