Competition between Brazil and other exporting countries in the US import market: a new extension of constant-market-shares analysis

This article develops a new extension of the constant-market-shares model, attributing the gains or losses of market share of an exporter in a specific market to its competitors. The method is then applied to Brazil's exports of manufactured products to the US market, determining from which countries and by how much Brazil gained market share, and to which countries Brazil lost market share in the period between 1992, 1999 and 2004. The bilateral gains and losses of Brazil to OECD countries are shown to be related to changes in the relative unit labour costs of these countries through a two-period panel data analysis.