Openness to trade and competitiveness of small transitional economies
Journal Title: Acta Economica - Year 2013, Vol 11, Issue 18
Abstract
Impact of openness to trade on overall economic growth/development and competitiveness is highly debatable subject amongst the economists with still unclear conclusions. The question of openness is particularly important in the case of small countries which tend to be more open and which are „doomed” to greater openness. The subject of this paper is to analyze the relationship between openness to foreign trade and competitiveness on a sample of 23 small and transitional economies. The aim of the research is to discern what kind of relationship between these two variables exists, and to investigate whether there is a difference between the ratio of export and the ratio of import and competitiveness. The results of our study suggest that one of the key benefits of outward orientation is better competitiveness on a global scale, and that is extremely important to differentiate between flows of foreign trade (export and import) especially when analyzing the openness of small countries. It is also important to conclude that the concept of competitiveness for the small transitional economies analyzed in this paper is actually compatible with the initial concept of competitiveness which looks at the export performance of countries where higher share of exports of industrial goods, or goods in higher processing phase means greater competitiveness.
Authors and Affiliations
Јелена Тешић
Keywords
Related Articles
- EP ID EP43768
- DOI https://doi.org/10.7251/ACE1318317T
- Views 284
- Downloads 0
Improvement of workforce quality in the function of reducing structural unemployment in Republic of Srpska
Погоршање индикатора тржишта рада је реланост са којом се данас сусрећу многе земље. Стопа незапослености у Републици Српској константно расте већ низ година и тренутно је 2,5 пута већа од просјечене стопе незапослености...
INSTITUTIONAL CHANGES AS A FOCTOR ECONOMICS PROSPERITY IN A TRANSITIONAL ECONOMY
Carrying out the institutional transformations which are necessary for efficient functioning of market economy, represente the preferential task for economies in transition. That refers, above all, to guaranteeing the pr...
Government Finance Statistics in Bosnia and Herzegovina: How far we have come
Fiscal reporting is the first principle of fiscal transparency. Its main purpose is to present accurate picture of government finance and to provide markets, legislatures and citizens with the necessary information to ho...
INTEGRATION PROCESSES ON THE LABOR MARKET AS A RESPONSE TO CRISIS IN TRANSITIONAL ECONOMIES
In conditions of transition and globalization which bring their own costs, and respecting specifics of domestic market, the platform for future institutional activities on labor market must be clearly defined. All this i...
THE GLOBAL CRISIS AND BOSNIA AND HERZEGOVINA
The financial crisis brought about by the break down of the USA mortgage market has affected almost all economies of the world. Its consequences are very severe: they include bankruptcies of major investment banks, great...