This master thesis researches the export competition between Germany and China. The Russian market has been selected as an example in order to explain ongoing export competition in facts and figures. It has been noted that competition is not only about battles of winners and losers, but it is also about impact of competition on growth and innovation of the economies. Following, the thesis finds out how competition impacts the growth and innovation of theireconomy and what further actions could be taken in this regard.
The ideas regarding the impact of competition on growth and modernization are controversial in economic literature and therefore different concepts are analysed. Moreover, the competitiveness of export masters has been researched which is an important part of international trade. The competitiveness of China and Germany is considered according to several criteria, which will be mentioned later in the thesis.
Germany and China play a significant role in the world trade and they have bigger shares in imports of different states. These countries have various export strategies in the world trade and in spite of this fact both of them could be considered successful in terms of international trade. Russia is in the list of 20 biggest importers of the world where the share of imports from China and Germany comprise substantial part.
It is notable to stress the fact that since 2010 China has won leadership in Russian market over Germany who has been a number one exporter for a long time. The sales of China to Russia have ever since further increased and exceeded the volume of German exports. This ongoing competition process and its analysis through competition theory takes a core place in the thesis.
Table of Contents
1 INTRODUCTION
2 HYPOTHESIS FORMATION
2.1 METHODOLOGY
2.2 DESIGN OF THE THESIS
3 LITERATURE VIEW
3.1 THEORETICAL FOUNDATION
3.2 COMPETITION AND INNOVATION
3.3 COMPETITION AND GROWTH
3.4 COMPETITIVENESS
4 GERMAN AND CHINESE EXPORT ECONOMY
4.1 COMPETITIVENESS OF GERMANY AND CHINA
4.2 THE EXPORTS OF GERMANY TO RUSSIA
4.3 THE EXPORTS OF CHINA TO RUSSIA
4.4 COMPETITION OF GERMAN AND CHINESE FIRMS IN RUSSIAN MARKET
5 ANALYSIS OF THE THEORIES OF COMPETITION AND INNOVATION
5.1 DOES THE EXPORT COMPETITION BETWEEN CHINA AND GERMANY CONTRIBUTE TO THE INNOVATION OF THEIR ECONOMIES?
5.2 ARE BOTH ECONOMIES ENOUGH COMPETITIVE IN ORDER TO CO-EXIST?
5.3 IS CHINA A THREAT FOR GERMAN EXPORTS?
6 MEETING CHALLENGES OF COMPETITION IN GLOBAL ECONOMY
7 CONCLUSION
Research Objectives & Core Topics
This master thesis investigates the export competition between Germany and China, utilizing the Russian market as a primary case study to analyze how this rivalry influences economic growth, innovation, and trade strategies in both nations.
- Theoretical analysis of competition and innovation frameworks.
- Comparative competitiveness of German and Chinese export industries.
- Evaluation of market dynamics and trade performance in Russia.
- Assessment of whether Chinese economic expansion poses a threat or an opportunity for German exporters.
Auszug aus dem Buch
1 INTRODUCTION
The international trade has been exposed to significant changes especially because of globalization process. The countries are opening borders, removing barriers for trade and adopting proper trade policies. In terms of trade, globalization offers both opportunities for countries and competition pressure. (Gorodnichenko et al, 2008, p. 3) The rapid growth of Chinese exports has put many world countries including EU under tough competition pressure. It has caused concerns and raised the question about competitiveness of European countries against China. (Bekovskis et al, 2014, p. 1)
As the biggest economy and exporter of Europe Germany also encounters challenges from China. The focus of this thesis is to research the impacts of export competition between Germany and China. In order to have a deep look into the topic, the export competition of the countries on the Russian market has also been researched. Russia has been selected because it is bigger trade partner of both countries. The motivation to write this thesis has been to research the fact that since 2010 China has won leadership in Russian market where Germany has for a long time been number first exporter. (Internet Portal of Foreign Trade, MEDR, 2013) This fact encouraged investigating the factors that make Chinese and German exports successful and impacts of export competition on their economy. Several theories and concepts explain positive and negative impact of competition. These theories have been applied in the thesis.
Summary of Chapters
1 INTRODUCTION: Introduces the background of globalization and the research focus regarding export competition between Germany and China within the Russian market.
2 HYPOTHESIS FORMATION: Outlines the core research questions and the methodologies used, including an overview of competition and Schumpeterian theories.
3 LITERATURE VIEW: Examines theoretical foundations, the relationship between competition, innovation, and growth, and defines the term competitiveness.
4 GERMAN AND CHINESE EXPORT ECONOMY: Analyzes the export compositions, strategies, and trade relations of Germany and China, specifically focusing on their performance in Russia.
5 ANALYSIS OF THE THEORIES OF COMPETITION AND INNOVATION: Applies the theoretical frameworks to evaluate the impact of Chinese competition on innovation and competitiveness in the German and Chinese economies.
6 MEETING CHALLENGES OF COMPETITION IN GLOBAL ECONOMY: Discusses future sustainability, green technology transitions, and the importance of adapting to changing global demand.
7 CONCLUSION: Summarizes the key findings, reiterating that both nations remain highly competitive and highlighting the strategic necessity of enhancing domestic demand.
Keywords
Export competition, Germany, China, Russia, innovation, competitiveness, Schumpeterian theory, economic growth, trade strategy, market leadership, foreign direct investment, SMEs, globalization, technological frontier, green technology.
Frequently Asked Questions
What is the primary focus of this master thesis?
The thesis explores the dynamics of export competition between Germany and China, using the Russian market as a specific case study to analyze its influence on economic growth and technological innovation.
Which theoretical frameworks are applied in the study?
The research relies on competition theory, the Schumpeterian concept regarding innovation, and established pillars of national competitiveness.
Why was the Russian market chosen for this research?
Russia was selected because it serves as a significant trade partner for both Germany and China, and because China recently surpassed Germany as the primary exporter to the Russian market.
What scientific methods does the author use?
The thesis utilizes a literature-based theoretical foundation, statistical analysis of trade data (GDP, FDI, export volumes), and various case studies to evaluate economic performance.
What are the central thematic fields covered?
The key themes include the relationship between competition and innovation, the impact of foreign direct investment, the role of SMEs, and the influence of government policy on export success.
What characterizes the competitiveness of the two nations?
The thesis highlights Germany's strength in high-tech, quality-driven exports versus China's advantage in economies of scale, price competitiveness, and aggressive export strategy.
How is China viewed by German stakeholders?
According to surveys presented in the thesis, many German citizens and decision-makers perceive China as a strong economic power that poses a threat to German industries, while business professionals often see it as an essential market for growth.
What role do Special Economic Zones play in the Chinese export success?
SEZs have been instrumental for China by providing tax exemptions and free-trade environments that attract foreign investment and foster industrial development.
- Quote paper
- Fuad Babayev (Author), 2014, The Export Competition between Germany and China, Munich, GRIN Verlag, https://www.grin.com/document/413445
