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Increased Export Performance and Competitiveness of Developing Countries: Mainly a China Story?

In manufacturing, developing economies have gained significant market share in both industrial countries and in each other’s markets. This development have led many writers to argue that market share increases in industrial countries and expanding south-south trade could possibly drive future world trade. Analyzing the manufacturing import penetration in 5 industrial and 7 large developing countries, we show that during the 2000s, about three quarters of market share increases of all developing are due to China. The evidence also shows that market shares of all other developing countries in the Chinese market have decreased.