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Export Competitiveness: Indicators and Methodologies

Indicators
Global Competitiveness Index (GCI)
The World Economic Forum ranks countries around the world according to their performance in indicators in three particular stages of competitiveness, including initial requirements (institutions, physical, and human infrastructure), efficiency enhancers (training and specialization, market efficiency, and technological readiness), and factors regarding innovation and sophistication. We have linked the key indicators especially relevant to export competitiveness.

FDI Confidence Index
Using the proprietary survey of the world's 1,000 corporations, the FDI Confidence Index gauges the likelihood of investment in specific markets in order to gain insights into likely trends in future global FDI flows. The Index was computed as a weighed average of the number of high, medium, low and "no interest" responses to a question about the likelihood of direct investment in a market.

International Trade Centre
The International Trade Centre's Market Analysis Services (MAS) provides on-line tools, disseminates market research and trade analysis, and conducts training programs in market analysis for trade support institutions and the business community in developing countries. Available products include the Trade Map (statistics for international business development), Market Access Map (customs tariffs world wide), and Investment Map (location, sales, employment information for foreign affiliates in developing countries).

Methodologies
Export Trends and Trade Structure Indices
There are several reasons why trade structure and changes in trade composition are important. A vast empirical literature stresses the strongly positive relationship between export diversification and growth. Similarly, consensus appears to emerge recently that the structure of exports or their diversification is crucial for productivity and resource allocation to achieve economic growth. This appendix describes and defines the most commonly used indicators to assess a country's trade structure and performance.

Decomposition of Export Share Growth
A decomposition of the countries export growth can inform about the role of structural and competitiveness factors as drivers of exports, but also on the questions of whether a particular country or country group has out- or under- performed competitors in selecting high-growth destination markets and sectors. The Constant Market Share approach (CMS) is a method that decmposes a country's export growth into parts attributed to the general rise in world exports, the commodity composition, and the effect of competitiveness changes.






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