Analysis of the Export Changes of Korea’s HS9031 Products Using a Constant Market Share Model

Purpose – This paper aims to investigate the export competitiveness of the Korean HS 9031 product group from 2016 to 2021 by adopting two constant market share models. Design/Methodology/Approach – This study utilizes two constant market share models, CMSA and CMSB. CMSA consists of disaggregating export growth into three main components. These components are referred to as the national growth component, the product component, and the trading country component. CMSB decomposes the total effect into the scale effect, the competitiveness effect, and the cross effect. All data used in this study were taken from the UN Comtrade database and the Korea International Trade Association database for four digit HS items. Findings – This study shows that Korea has a competitive edge over Vietnam, the United States, Taiwan, and Mexico in the domestic market, but has a competitive disadvantage in their import markets, while for India, Korea has competitive edge at home, but has a competitive disadvantage in India’s market. Research Implications – The analysis suggests that approaches and policies that focus on import market share rather than a competitive edge in the domestic market are needed.