China-Canada competition in the U.S. market : Office of the Chief Economist : analytical report

The views expressed in these reports do not necessarily reflect the views of the Department of Foreign Affairs and International Trade or of the Government of Canada. [...] Although China might offer competition to Canada in many of our export markets, of particular interest is the likely impact of the growth of China’s exports to the United States. [...] One measure of this is the 2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Office of the Chief Economist: Analytical Report Balassa index which measures “the ratio of the share of a given product in a country’s exports to another country or region to the share of the same product in that country or region’s total exports”3. [...] This type of analysis decomposes the growth of Canadian exports to the U. S. into two effects, a share effect (which assumes Canada keeps a constant share of the U. S. market) and a competitiveness effect (allowing for changing market share). [...] This competitive effect can then be split into two; the change in market share relative to China and the change relative to the rest of the world5.