What Explains Germany's Rebounding Export Market Share?

55 Pages Posted: 18 Apr 2007

See all articles by Stephan Danninger

Stephan Danninger

International Monetary Fund (Research Department)

Frederick Joutz

George Washington University

Multiple version iconThere are 3 versions of this paper

Date Written: March 2007


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. off-shoring). An export model is estimated covering the period 1993-2005. The dominant factor explaining the increase in market share are trade relationships with fast growing countries. Regionalized production in the export sector also played a part. Improved cost competitiveness had a comparatively smaller impact. There is no conclusive evidence of increased demand for capital goods.

Keywords: international trade, export

JEL Classification: C22, F41

Suggested Citation

Danninger, Stephan and Joutz, Frederick, What Explains Germany's Rebounding Export Market Share? (March 2007). CESifo Working Paper Series No. 1957, Available at SSRN: https://ssrn.com/abstract=981115 or http://dx.doi.org/10.2139/ssrn.981115

Stephan Danninger (Contact Author)

International Monetary Fund (Research Department) ( email )

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

Frederick Joutz

George Washington University ( email )

710 21st Street NW
Washington, DC 20052
United States

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