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Contents Introduction

Constant market share analysis of imports in apparent consumption in manufacturing industries of four major economies—Korea, Japan, Taiwan and the United States, is conducted over the most recent available data. The analysis provides an alternative to existing conventional studies of market share in imports. It provides a quantitative measure of the extent to which international economic integration has occurred in manufacturing in these four economies. This study, in addition, disaggregates import enetration in manufacturing, including in sectors with relatively high technological requirements. Statistical tests of the significance of changes in import penetration in manufacturing industries are conducted. Real growth of exports and apparent consumption in the two largest OECD markets is decomposed into (1) the commodity composition effect and (2) the market share or competitiveness effect. Finally, a statistical test of the significance of changes in trade policy for changes in import penetration in Japan and the United States is conducted.