scholarly journals Competitiveness as the Ability to Adjust: the EU–10 Exports Structure and Its Convergence to the German Pattern

2018 ◽  
Vol 21 (1) ◽  
pp. 119-133
Author(s):  
Elżbieta Czarny ◽  
Małgorzata Żmuda

Competitiveness of a nation is associated with a set of characteristics that enable structural adjustment to global technological trends, and as a consequence, a rise in the living standard of its citizens. For catching-up economies, GDP convergence towards the most developed economies, constituting their developmental goal, relies upon its ability to shift production and exports structure towards specialization based on knowledge and innovation. Thus, in this paper, competitiveness is evaluated through structural adjustments of exports, and for catching-up economies (the EU–10 states) it may be understood as the ability to close the structural gap to the most developed countries (here: the strongest EU member economy: Germany). We analyse the evolution of the EU–10 nations’ exports specialization in the years 2000 and 2014, checking whether the convergence towards the German exports pattern can be observed, and which of the analysed economies shows the best ability to shift its exports structure towards high-tech specialization. We look additionally at exports structures in 2004 (the year of EU-accession of eight out of 10 countries in the sample) and in 2009 (world trade collapse during the economic crisis). The analysis is based on the Revealed Comparative Advantage (RCA) concept by Balassa (1965). We use the UN Trade Statistics data in the Standard International Trade Classification (SITC), Rev. 4. Commodity groups are classified following the methodology developed by Wysokińska (1997, p. 18).

2020 ◽  
Vol 34 (4) ◽  
pp. 910-936
Author(s):  
Paweł Kaczmarczyk ◽  
Enrique Aldaz-Carroll ◽  
Paulina Hołda

This article belongs to the special cluster, “Politics and Current Demographic Challenges in Central and Eastern Europe,” guest-edited by Tsveta Petrova and Tomasz Inglot. Even if Poland has been commonly presented as a typical emigration country, the post–EU accession migration still presents an extremely interesting case in terms of its (very high) scale, structural characteristics, and consequences. With about 2.5 million of its citizens staying temporarily abroad, Poland belongs to the most mobile European nations, and the post-accession migration to the EU is presented as a “natural experiment.” The article aims to discuss the main economic outcomes of the post-2004 migration from Poland and to address the question to what extent the Polish experience is transferable and can be used as a policy lesson for other developing countries. Based on the Polish case, the authors argue that labor migration from a country with large workforce surpluses (as present in most of the less developed countries) can help avoid hysteresis and support the structural transformation of the economy. Fulfillment of these positive expectations is however dependent on several factors including structure of migration (and return migration), structural conditions at origin and public policies imposed. Authors argue that migration policies have only limited impact on the scale and structure of international migration but public policies are critically important in harnessing the developmental potential of migration.


Author(s):  
RamMohan R. Yallapragada ◽  
Ron M. Sardessai ◽  
Madhu R. Paruchuri

In July 2004, 147 World Trade Organization (WTO) member countries met in Geneva where the developed countries agreed to cut back and eventually eliminate an estimated $350 billion of their farm and export subsidies. The accord was hammered out by five WTO members including India and Brazil and submitted to the WTOs plenary session where it was finally ratified on July 31, 2004. The Fifth Ministerial Conference of the World Trade Organization held in Cancun in September 2003 collapsed from inside as internal squabbles and irreconcilable philosophical differences developed between the developed countries and the developing countries. The WTO, which started with noble objectives of raising the global standards of living through international trade agreements and cooperation among the WTO member countries, appeared to be teetering on the verge of a complete collapse. Over the past decade, through five ministerial conferences, the WTO member countries gradually got polarized into two main blocks, the haves and the have nots, the developed countries and the still developing countries respectively. One of the important items of contention was the issue of reduction and elimination of the huge farm subsidies in the European Union (EU) and the United States (US). At the 2003 WTO conference in Cancun, 21 of the developing countries formed a group, known as G-21 initiated under the leadership of Brazil and India, and insisted on discussions for elimination of the farm subsidies of the EU-US combine. The EU and US governments give billions of dollars worth of agricultural and export subsidies annually to their farmers that allow them to have a competitive advantage in international markets in effect preventing agricultural producers in developing countries from having access to global markets. The EU delegates insisted that the four Singapore issues must be dealt with first before including any discussions on the issues of farm subsidies on the agenda. The G-21 over night swelled into G-70. The developing countries refused to be pushed into a corner and have proved that they are now a force to reckon with. The WTO Cancun conference came to a dramatic end without any agreement, leaving the negotiations in a deadlock. At the historic July 2004 WTO negotiations in Geneva, an accord has been reached under which the developed countries agreed to reduce and eventually eliminate their export and farm subsidies. The developing countries also agreed to lower their tariffs on imports from EU-US and other developed countries. The accord is expected to pave the way for the resumption of the WTO Doha Round of multilateral negotiations to liberalize world trade.


Author(s):  
A. A. Sidorov

Factors and possible consequences of transatlantic integration are elaborated in the article. An overview of the history of transatlantic cooperation is provided. The author highlights the paramount goal of Transatlantic Trade and Investment Partnership (TTIP) - strengthening the positions of its parties in the world economy against the backdrop of global competition. Stalemate in Doha round of WTO trade negotiations as well as depressed state of the European economy also contributed to transatlantic integration. Validity of the EU Commission conclusion on TTIP benefits is examined. Results of TTIP econometric modelling are critically assessed. Problems of the EU-US non-tariff liberalization are analyzed. Efficiency of the EU and US labor markets is compared. Low competitiveness of the EU in comparison to the USA and underlying risks for TTIP economic growth and employment are outlined. High unemployment, difficulties of manufacturing (including high-tech industries thereof) recovery, adverse general business situation in the EU are among such risks. Various modes of regulatory cooperation and possibility of their adoption in TTIP are considered. Harmonization, erga omnes mutual recognition of regulations, bilateral mutual recognition of regulations, mutual recognition of conformity testing are distinguished. Possible implications of the modes of regulatory cooperation on TTIP members competitiveness, competition with emerging economies and global standard setting are examined. Conflict of TTIP goals and motivations is revealed. The existence of economic factors of transatlantic integration as well as overestimation of TTIP benefits (primarily for the EU economy) is concluded.


2021 ◽  
Vol 13 (4) ◽  
pp. 2265
Author(s):  
Eva Ivanová ◽  
Eva Grmanová

The basic feature of developed economies is a high economic growth rate, which creates the preconditions for a high living standard of population based on high incomes from economic activities. Development processes in advanced economies also include changes in demographic development, resulting in population structure changes, as well as labor force structure changes caused by birth rates reduction and life expectancy increase and an aging process. Due to the high standard of living in European developed countries, they are becoming attractive to less developed countries, having a surplus of labor that migrates to work with a vision of increasing living standards and quality of life. The workforce does not always find full employment here in terms of qualifications, leading to social inequalities between the domestic population and immigrants for whom the social situation poses a risk of poverty. The goal of the article is to determine the specifics of inequalities between the domestic and immigrant population in terms of social status in individual EU countries. Immigrants coming out of the EU are significantly at higher risk of poverty. In most EU countries, the employment rate in the group “nationals” is lower than in the group “foreign” from the EU.


Ekonomika ◽  
2004 ◽  
Vol 67 ◽  
Author(s):  
Dalia Štreimikienė

The article analyses energy efficiency and energy consumption trends in Lithuania in terms of sustainable development and aims to assess these trends in developed and transition economies. The results of development achieved by EU-15 and other developed countries indicate that the goals of sustainable development such as prosperity, high rates of economic development and low impact on the environment are not conflicting and can be achieved together. Transition economies newly entered the EU and suffering from a high resource intensity of economics and a comparatively low income per capita can converge in terms of the main indicators with EU-15 up to 2020.


Author(s):  
Vlado Dimovski ◽  
Jana Znidarsic

Challenges of modern economy are forcing the developed countries to seek comparative advantages mainly in their human resources in the trained, educated, flexible and self-confident workforce. Lifetime learning, continuous training and systematic development of entrepreneurial and managerial skills are becoming the basic need for any developed and/or developing country. Well-educated people with the above mentioned characteristics are initiators of high-tech and dynamic entrepreneurship, which is without doubt the main factor of development. Considering the fact that Slovenia is still far away from ideal entrepreneurial society in which entrepreneurship is the way of life for the majority of its population as well as taking into account that Slovenian entrepreneurs and managers have much lower education than their American counterparts we come to the conclusion that Slovenia should focus much more on entrepreneurial and managerial education. For these reasons we are going to discuss the following hypotheses:Slovenia needs to expand its entrepreneurial activity in general, especially dynamic and high-tech entrepreneurship to compete successfully on the European market.The psychological profile of Slovenian people and/or entrepreneurs is closer to theprofile of employees than to dynamic entrepreneurs. Dynamic entrepreneurship requires a higher educational level than Slovenian entrepreneursposses.Slovenia should improve its educational structure.Entrepreneurial education should involve the implementation of modern, active learningmethods.Active teaching (learning) methods contribute to the development of entrepreneurial characteristics.


2020 ◽  
Vol 12 (19) ◽  
pp. 8200
Author(s):  
Eulalia Skawińska ◽  
Romuald I. Zalewski

The paper focuses on key success factors of startups in the European Union. Startup companies have a massive potential to boost the level of innovation and competitiveness of national economies. They are also uniquely equipped to provide extremely effective and flexible ways of meeting both existing and emerging market needs. However, the development of these microventures differs from country to country. Hence, we put forth a hypothesis that strategic success factors in the development of startups vary in highly developed and catching-up countries. Our main goal was to determine the key success factors of startups in the EU, and to classify the gap between developed and lagging Member States. For this purpose, we applied the method of component analysis on startup data available for selected the EU states. We managed to isolate 5 components explaining 72% of data variability, all of which can be linked to human capital as well as to formal and informal economic institutions. The results confirmed the validity of our hypothesis. We established that more developed countries offer an institutional competitive advantage to startups, while the gap in success factors between highly developed and catching-up countries can be attributed to human capital and to institutions. Based on our findings, we offer suggestions how to reduce this gap by improving formal and informal institutions via innovative public policy and by supporting education.


2018 ◽  
Vol 2018 (7) ◽  
pp. 20-34
Author(s):  
Valentyn MAMUTOV

Some examples of development of Ukraine’s high-tech industries, such as rocket and space and aircraft building, are considered. At the same time, the emphasis is on strengthening production cooperation with the most developed countries of the world, in particular the EU, in implementing the most ambitious projects with simultaneous adaptation to relevant standards, technologies, etc. This meets interests of our state and interests of society: activation in high-tech sectors of the economy has a multiplier effect of acceleration in related spheres and industries – from increase in demand for metallurgical products to intensification of scientific research in dozens of spheres. It is noted that in the presence of external factors unfavorable for the industry of Ukraine (rather painful and debatable topic of the break-up of cooperation ties with the Russian Federation is raised), successful reorientation of cooperative ties can in the long term become an impetus for steady development under condition of stability of the legal system. Such stability is achieved by compacting and codifying legislation and increasing the volume of the core act of economic legislation – the Economic Code, which corresponds to the practice of rulemaking in many EU countries. Some examples of codification of economic legislation are given. Structure of such codes allows evaluating the structure of economic legislation of these countries. During formation and codification of economic legislation, a very large group of specialists in the field of legal regulation of economic (including entrepreneurial and commercial) activities has formed, which can contribute to the achievement of the above results and development and improvement of legal regulation in this area. Despite all the complexities of academic science, the corresponding potential is not lost. Harmonization of the norms of Ukrainian economic legislation with the relevant norms of European and international legislation is an important task for our entire state. Concernment of implementation of this direction must be supported and encouraged in every possible way.


Author(s):  
V. Dadalko

The authors point to the current trends in the development of society, revealed by globalization: stratification of the population by income, the formation of economically developed centers and economic periphery, the dominance of developed countries over developing ones. The article discusses the advantages and disadvantages of the concepts of technological superiority; it is emphasized that the concept of catch-up development allows saving resources in the process of modernizing production, but leads to a technological lag. Therefore, during the transition to the advanced development, the need for the consistent infrastructure becomes urgent, offering opportunities for the commercialization of new developments, and financing projects of competitive high-tech industries. The stages of technological modernization and transition to the "Industry 4.0" production standard are considered and several examples of the implementation of products accompanying the production of transformers are proposed. The conclusion is drawn: in the mode of catching-up development, it is necessary to concentrate resources for modernization and improvement of production; in the mode of advanced development, in addition to financing scientific developments, it is necessary to create conditions for attracting innovations and ensuring their implementation.


2021 ◽  
Vol 19 (1) ◽  
pp. 503-510
Author(s):  
Tadeusz Olkuski ◽  
Wojciech Suwała ◽  
Artur Wyrwa ◽  
Janusz Zyśk ◽  
Barbara Tora

Abstract The article shows the consumption of primary energy carriers in selected European Union (EU) countries, including Poland. The trend of consumption of primary energy carriers was compared with the global trend, which is different from that observed in the EU. The consumption of primary energy sources has been increasing steadily for many decades, due to the growth of the world population and the aspirations of developing countries to raise the standard of living of their citizens. In the EU, the opposite trend, i.e., a decrease in primary energy consumption, has been observed since 2007. This article presents tables and graphs showing these phenomena. The authors tried to answer the following questions: (a) What influences the decrease in demand for primary energy in highly developed countries? (b) Why the demand in less-developed countries is constantly growing? The trends in countries, such as Germany, France, the United Kingdom, Italy, and Poland, i.e., countries with the most developed economies in the EU and the home country of the authors, were analyzed.


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