IDENTIFYING NICHE MARKETS FOR EXPORTING COUNTRIES: A MULTIVARIATE ANALYSIS FOR 2011

Abstract

This study aimed to identify market niches based on exports of 97 types of products made by 68 countries in 2011. Therefore, multivariate analysis techniques were used in order to determine which groups of countries are exporting similar products. The results indicate that exports of products of heavy industry (metal and concrete) and technology (machinery, reactors and electronic products) are the main differentiation factor between countries. China was the country with the highest score in these criteria (outlier) followed by Group USA and Germany. Brazil was included into an intermediate group and seems to compete more intensively with countries like India, Mexico, Malaysia, Turkey and nine other economies. In general, any trade agreement that focuses on economies inserted into the same group should consider the fact that they are not complementary between themselves and have been competing for the same niche in the foreign market.