Abstract
This paper introduces a tree-form constant market share (CMS) model for analyzing growth causes in international trade based on multi-level classification. The tree-form CMS is a collection of CMS models at different levels, including the entire, branch- and leaf-models, which consists of a large amount of information and has a wide application spectrum. Basic properties of this model are investigated in detail. It is shown that the tree-form CMS model is superior to other CMS models in the literature. It is also shown that well known CMS formulations are special cases of a linear class with two parameters, which control how the interaction term is divided into the demand growth and competitive terms. Application to bilateral trade between China and Germany shows that the growth causes in different periods are clearly different. It is shown that the outputs of the tree-form CMS model can be used for further suitable statistical analysis. Furthermore, our theoretical findings are also confirmed by those data examples.
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Acknowledgments
The paper was finished when the second author worked as a research assistant on a cooperative research project between the University of Paderborn and the China Agricultural University. We are grateful to the financial support of the Faculty of Business Administration and Economics, University of Paderborn, Germany. We would like to thank to the Editor and two referees for their useful comments and suggestions, which helped to improve the quality of the paper clearly. The data used are downloaded from the website of the UN Comtrade.
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Appendix: Proofs of the results
Appendix: Proofs of the results
1.1 Proof of Theorem 1
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Case 1:
-
a)
Since \( s_1^0=s_2^0=\ldots =s_n^0 \), we have \( {s^0}=s_1^0 \). This results in
$$ \begin{array}{*{20}c} {E_1^D=\sum\limits_i {s_i^0\varDelta {Q_i}-{s^0}\varDelta Q=s_1^0\varDelta {Q_1}+s_2^0\varDelta {Q_2}+\ldots +s_n^0\varDelta {Q_n}-{s^0}\varDelta Q} } \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^0\varDelta {Q_1}+s_1^0\varDelta {Q_2}+\ldots +s_1^0\varDelta {Q_n}-s_1^0\varDelta Q} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^0\left( {\varDelta {Q_1}+\varDelta {Q_2}+\ldots +\varDelta {Q_n}} \right)-s_1^0\varDelta Q} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^0\varDelta Q-s_1^0\varDelta Q=0.} \hfill \\ \end{array} $$ -
b)
Since \( s_1^1=s_2^1=\ldots =s_n^1 \), we have \( {s^1}=s_1^1 \). This results in
$$ \begin{array}{*{20}c} {E_1^C=\sum\limits_i {\varDelta {s_i}Q_i^0-\varDelta s{Q^0}=\left( {s_1^1-s_1^0} \right)Q_1^0+\left( {s_2^1-s_2^0} \right)Q_2^0+\ldots +\left( {s_n^1-s_n^0} \right)Q_n^0-\left( {{s^1}-{s^0}} \right){Q^0}} } \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^1Q_1^0-s_1^0Q_1^0+s_2^1Q_2^0-s_2^0Q_2^0+\ldots +s_n^1Q_n^0-s_n^0Q_n^0-{s^1}{Q^0}+{s^0}{Q^0}} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^1Q_1^0+s_1^1Q_2^0+\ldots +s_1^1Q_n^0-s_1^1{Q^0}-q_1^0-q_2^0-\ldots -q_n^0+{q^0}} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^1\left( {Q_1^0+Q_2^0+\ldots +Q_n^0} \right)-s_1^1{Q^0}-{q^0}+{q^0}} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad =s_1^1{Q^0}-s_1^1{Q^0}=0.} \hfill \\ \end{array} $$ -
c)
Under the conditions of a) and b), we have \( E_1^D=0 \) and \( E_1^C=0 \).
Hence \( E_1^I=0 \), because \( E_1^D + E_1^C+E_1^I=0. \)
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a)
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Case 2:
Since \( Q_1^0:Q_2^0:\ldots :Q_n^0=Q_1^1:Q_2^1:\ldots :Q_n^1=1:{C_2}:\ldots :{C_n} \), we have
$$ \begin{array}{*{20}c} {\sum\limits_i {s_i^0} \varDelta {Q_i}=s_1^0\varDelta {Q_1}+s_2^0\varDelta {Q_2}+\ldots +s_n^0\varDelta {Q_n}=s_1^0\left( {Q_1^1-Q_1^0} \right)+s_2^0\left( {Q_2^1-Q_2^0} \right)+\ldots +s_n^0\left( {Q_n^1-Q_n^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = s_1^0\left( {Q_1^1-Q_1^0} \right)+s_2^0\left( {{C_2}Q_1^1-{C_2}Q_1^0} \right)+\ldots +s_n^0\left( {{C_n}Q_1^1-{C_n}Q_1^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = s_1^0\left( {Q_1^1-Q_1^0} \right)+{C_2}s_2^0\left( {Q_1^1-Q_1^0} \right)+\ldots +{C_n}s_n^0\left( {Q_1^1-Q_1^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \left( {Q_1^1-Q_1^0} \right)\left( {s_1^0+{C_2}s_2^0+\ldots +{C_n}s_n^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \left( {Q_1^1-Q_1^0} \right)\left( {\frac{{q_1^0}}{{Q_1^0}}+{C_2}\frac{{q_2^0}}{{Q_2^0}}+\ldots +{C_n}\frac{{q_n^0}}{{Q_n^0}}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \left( {Q_1^1-Q_1^0} \right)\left( {\frac{{q_1^0}}{{Q_1^0}}+{C_2}\frac{{q_2^0}}{{{C_2}Q_1^0}}+\ldots +{C_n}\frac{{q_n^0}}{{{C_n}Q_1^0}}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \left( {Q_1^1-Q_1^0} \right)\left( {\frac{{q_1^0+q_2^0+\ldots +q_n^0}}{{Q_1^0}}} \right)=\left( {Q_1^1-Q_1^0} \right)\frac{{{q^0}}}{{{Q^0}}}\frac{{{Q^0}}}{{Q_1^0}}} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = {s^0}\left( {Q_1^1-Q_1^0} \right)\frac{{Q_1^0+Q_2^0+\ldots +Q_n^0}}{{Q_1^0}}} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = {s^0}\left( {Q_1^1-Q_1^0} \right)\left( {1+{C_2}+\ldots +{C_n}} \right).} \hfill \\ \end{array} $$$$ \begin{array}{*{20}c} {\mathrm{And}\quad {s^0}\varDelta Q={s^0}\left( {{Q^1}-{Q^0}} \right)={s^0}\left( {Q_1^1+Q_2^1+\ldots +Q_n^1-Q_1^0-Q_2^0-\ldots -Q_n^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = {s^0}\left[ {\left( {Q_1^1-Q_1^0} \right)+\left( {Q_2^1-Q_2^0} \right)+\ldots +\left( {Q_n^1-Q_n^0} \right)} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = {s^0}\left[ {\left( {Q_1^1-Q_1^0} \right)+{C_2}\left( {Q_1^1-Q_1^0} \right)+\ldots +{C_n}\left( {Q_1^1-Q_1^0} \right)} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = {s^0}\left( {Q_1^1-Q_1^0} \right)\left( {1+{C_2}+\ldots +{C_n}} \right).} \hfill \\ \end{array} $$Hence \( E_1^D=\sum\limits_i {s_i^0\varDelta {Q_i}} -{s^0}\varDelta Q=0. \)
$$ \begin{array}{*{20}c} {\mathrm{Furthermore},\quad \sum\limits_i {\varDelta {s_i}Q_i^0} =\varDelta {s_1}Q_1^0+\varDelta {s_2}Q_2^0+\ldots +\varDelta {s_n}Q_n^0} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = \varDelta {s_1}Q_1^0+\varDelta {s_2}{C_2}Q_1^0+\ldots +\varDelta {s_n}{C_n}Q_1^0} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left( {\varDelta {s_1}+{C_2}\varDelta {s_2}+\ldots +{C_n}\varDelta {s_n}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left[ {\left( {\frac{{q_1^1}}{{Q_1^1}}-\frac{{q_1^0}}{{Q_1^0}}} \right)+{C_2}\left( {\frac{{q_2^1}}{{Q_2^1}}-\frac{{q_2^0}}{{Q_2^0}}} \right)+\ldots +{C_n}\left( {\frac{{q_n^1}}{{Q_n^1}}-\frac{{q_n^0}}{{Q_n^0}}} \right)} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left[ {\left( {\frac{{q_1^1}}{{Q_1^1}}-\frac{{q_1^0}}{{Q_1^0}}} \right)+{C_2}\left( {\frac{{q_2^1}}{{{C_2}Q_1^1}}-\frac{{q_2^0}}{{{C_2}Q_1^0}}} \right)+\ldots +{C_n}\left( {\frac{{q_n^1}}{{{C_n}Q_1^1}}-\frac{{q_n^0}}{{{C_n}Q_1^0}}} \right)} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left[ {\left( {\frac{{q_1^1}}{{Q_1^1}}+\frac{{q_2^1}}{{Q_1^1}}+\ldots +\frac{{q_n^1}}{{Q_1^1}}} \right)-\left( {\frac{{q_1^0}}{{Q_1^0}}+\frac{{q_2^0}}{{Q_1^0}}+\ldots +\frac{{q_n^0}}{{Q_1^0}}} \right)} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left( {\frac{{{q^1}}}{{Q_1^1}}-\frac{{{q^0}}}{{Q_1^0}}} \right)=Q_1^0\left( {\frac{{{q^1}}}{{{Q^1}}}\frac{{{Q^1}}}{{Q_1^1}}-\frac{{{q^0}}}{{{Q^0}}}\frac{{{Q^0}}}{{Q_1^0}}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left( {\frac{{{q^1}}}{{{Q^1}}}\frac{{Q_1^1+Q_2^1+\ldots +Q_n^1}}{{Q_1^1}}-\frac{{{q^0}}}{{{Q^0}}}\frac{{Q_1^0+Q_2^0+\ldots +Q_n^0}}{{Q_1^0}}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left( {\frac{{{q^1}}}{{{Q^1}}}\frac{{Q_1^1+{C_2}Q_1^1+\ldots +{C_n}Q_1^1}}{{Q_1^1}}-\frac{{{q^0}}}{{{Q^0}}}\frac{{Q_1^0+{C_2}Q_1^0+\ldots +{C_n}Q_1^0}}{{Q_1^0}}} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left[ {\frac{{{q^1}}}{{{Q^1}}}\frac{{Q_1^1\left( {1+{C_2}+\ldots +{C_n}} \right)}}{{Q_1^1}}-\frac{{{q^0}}}{{{Q^0}}}\frac{{Q_1^0\left( {1+{C_2}+\ldots +{C_n}} \right)}}{{Q_1^0}}} \right]} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad = Q_1^0\left( {1+{C_2}+\ldots +{C_n}} \right)\left( {\frac{{{q^1}}}{{{Q^1}}}-\frac{{{q^0}}}{{{Q^0}}}} \right),} \hfill \\ \end{array} $$$$ \begin{array}{*{20}c} {\mathrm{and}\quad \varDelta s{Q^0}=\left( {\frac{{{q^1}}}{{{Q^1}}}-\frac{{{q^0}}}{{{Q^0}}}} \right)\left( {Q_1^0+Q_2^0+\ldots +Q_n^0} \right)=\left( {\frac{{{q^1}}}{{{Q^1}}}-\frac{{{q^0}}}{{{Q^0}}}} \right)\left( {Q_1^0+{C_2}Q_1^0+\ldots +{C_n}Q_1^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =Q_1^0\left( {1+{C_2}+\ldots +{C_n}} \right)\left( {\frac{{{q^1}}}{{{Q^1}}}-\frac{{{q^0}}}{{{Q^0}}}} \right).} \hfill \\ \end{array} $$Hence \( E_1^C=\sum\limits_i {\varDelta {s_i}} Q_i^0-\varDelta s{Q^0}=0. \)
Finally we have \( E_1^I=0 \), because \( E_1^D+E_1^C+E_1^I=0. \)
1.2 Proof of Corollary 1
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a)
When n = 2, we have
$$ \begin{array}{*{20}c} {E_1^D=s_1^0\varDelta Q{}_1+s_2^0\varDelta Q{}_2-{s^0}\varDelta Q=\frac{{q_1^0}}{{Q_1^0}}\left( {Q_1^1-Q_1^0} \right)+\frac{{q_2^0}}{{Q_2^0}}\left( {Q_2^1-Q_2^0} \right)-\frac{{q_1^0+q_2^0}}{{Q_1^0+Q_2^0}}\left( {Q_1^1+Q_2^1-Q_1^0-Q_2^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =\frac{{Q_1^1}}{{Q_1^0}}q_1^0-\frac{{Q_1^1+Q_2^1}}{{Q_1^0+Q_2^0}}q_1^0-\frac{{Q_1^1+Q_2^1}}{{Q_1^0+Q_2^0}}q_2^0+\frac{{Q_2^1}}{{Q_2^0}}q_2^0} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =\frac{{Q_1^1Q_2^0-Q_1^0Q_2^1}}{{Q_1^0}}q_1^0-\frac{{Q_1^1Q_2^0-Q_1^0Q_2^1}}{{Q_2^0}}q_2^0} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =\left( {Q_1^0Q_2^1-Q_1^1Q_2^0} \right)\left( {s_2^0-s_1^0} \right).} \hfill \\ \end{array} $$Hence \( E_1^D \) is positive (zero or negative), iff \( \left( {Q_1^0Q_2^1-Q_1^1Q_2^0} \right)\left( {s_1^0-s_2^0} \right)<0\left( {=0\,\mathrm{or} > 0} \right). \)
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b)
Furthermore, we have
$$ \begin{array}{*{20}c} {E_1^C=\varDelta {s_1}Q_1^0+\varDelta {s_2}Q_2^0-\varDelta s{Q^0}=\left( {\frac{{q_1^1}}{{Q_1^1}}-\frac{{q_1^0}}{{Q_1^0}}} \right)Q_1^0+\left( {\frac{{q_2^1}}{{Q_2^1}}-\frac{{q_2^0}}{{Q_2^0}}} \right)Q_2^0-\left( {\frac{{q_1^1+q_2^1}}{{Q_1^1+Q_2^1}}-\frac{{q_1^0+q_2^0}}{{Q_1^0+Q_2^0}}} \right)\left( {Q_1^0+Q_2^0} \right)} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =\frac{{Q_1^0}}{{Q_1^1}}q{}_1^1-\frac{{Q_1^0+Q_2^0}}{{Q_1^1+Q_2^1}}q_1^1-\frac{{Q_1^0+Q_2^0}}{{Q_1^1+Q_2^1}}q_2^1+\frac{{Q_2^0}}{{Q_2^1}}q{}_2^1} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_1^1}}q_1^1-\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_2^1}}q{}_2^1} \hfill \\ {\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad = \left( {Q_1^0Q_2^1-Q_1^1Q_2^0} \right)\left( {s_1^1-s_2^1} \right).} \hfill \\ \end{array} $$Hence \( E_1^C \) is positive (zero or negative), iff \( \left( {Q_1^0Q_2^1-Q_1^1Q_2^0} \right)\left( {s_1^1-s_2^1} \right)>0\left( {=0\,or < 0} \right) \).
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c)
For \( E_1^I \), we have
$$ \begin{array}{*{20}c} {E_1^I=\varDelta {s_1}\varDelta {Q_1}+\varDelta {s_2}\varDelta {Q_2}-\varDelta s\varDelta Q} \\ {=\left( {\frac{{q_1^1}}{{Q_1^1}}-\frac{{q_1^0}}{{Q_1^0}}} \right)\left( {Q_1^1-Q_1^0} \right)+\left( {\frac{{q_2^1}}{{Q_2^1}}-\frac{{q_2^0}}{{Q_2^0}}} \right)\left( {Q_2^1-Q_2^0} \right)-\left( {\frac{{q_1^1+q_2^1}}{{Q_1^1+Q_2^1}}-\frac{{q_1^0+q_2^0}}{{Q_1^0+Q_2^0}}} \right)\left( {Q_1^1+Q_2^1-Q_1^0-Q_2^0} \right)} \\ {=\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_1^0\left( {Q_1^0+Q_2^0} \right)}}q_1^0-\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_2^0\left( {Q_1^0+Q_2^0} \right)}}q_2^0-\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_1^1\left( {Q_1^1+Q_2^1} \right)}}q_1^1+\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{Q_2^1\left( {Q_1^1+Q_2^1} \right)}}q_2^1} \\ {=\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{{Q^0}}}\left( {s_1^0-s_2^0} \right)-\frac{{Q_1^0Q_2^1-Q_1^1Q_2^0}}{{{Q^1}}}\left( {s_1^1-s_2^1} \right).} \\ \end{array} $$\( E_1^I \) is positive (zero or negative), iff \( \left( {Q_1^0Q_2^1-Q_1^1Q_2^0} \right)\left[ {\left( {s_1^0-s_2^0} \right){Q^1}-\left( {s_1^1-s_2^1} \right){Q^0}} \right]>0\left( {=0\,or < 0} \right) \).
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d)
It is clear the terms \( E_1^D \), \( E_1^C \) and \( E_1^I \) all vanish, if \( Q_1^0Q_2^1=Q_1^1Q_2^0 \) or \( s_1^0=s_2^0 \) and \( s_1^1=s_2^1 \). On the other hand, if \( Q_1^0Q_2^1\ne Q_1^1Q_2^0 \) and \( s_1^0\ne s_2^0 \) or \( s_1^1\ne s_2^1 \) at least one of \( E_1^D \) and \( E_1^C \) is non-zero. This finishes the proof.
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Feng, Y., Guo, Z. & Peitz, C. A Tree-form Constant Market Share Model for Growth Causes in International Trade Based on Multi-level Classification. J Ind Compet Trade 14, 207–228 (2014). https://doi.org/10.1007/s10842-013-0156-y
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DOI: https://doi.org/10.1007/s10842-013-0156-y