ABSTRACT
The results for exports of Electrical machinery and Power generating machinery are presented in columns 7-10 of the same table. During the 1990−4 period, price competition in these two sectors explains a significant part of each exporter’s share in the EU market (see the relevant R2 values). These values are particularly high for Turkey and China in the Power generating machinery market. This is due to the high elasticities of
substitution in the same period, which do not allow for wide margins between costs and prices. In the 1995-9 period, on the other hand, the influence of price competition on market shares declined considerably as seen in the reduced elasticities of substitution.
