On Essence and Masurement of Changes in Competitiveness of the Accession Countries. Critical Review of Literature

Although competitiveness is a world very often used in literature it is seldom to be found in economic textbook which prefer the term comparative advantage much narrowly defining formula describing international specialization. As Porter underlines comparative advantage and competitiveness (competitive advantage) do not overlap because competitiveness is much wider concept. Competitiveness is an ambiguous notion. In literature there are many approaches to competitiveness and many ways of defining and measuring it. Partly it is a result of the lack of general theory of competitiveness and the fact that this category is of business rather than theoretical origins. Paper systematizes and presents results of analysis on competitiveness of the accession countries which are based on three approaches to competitiveness: macro, micro and trade approach.competitiveness, productivity, transition economies, manufacturing industry, EU integration

Changes in the Competitive Position of the Czech Republic, Hungary and Poland in the EU Market

This paper aims at comparing the uneven process of changes in competitiveness among three accession countries' manufacturing industries, the Czech Republic, Hungary and Poland, during the period prior to their EU membership (1996-2003). It demonstrates that the three countries improved competitiveness in the majority of their manufacturing industries. However, these changes were differentiated across time, among industries, in terms of the quality of segments and between the three countries overall. A drop in the productivity gap between the manufacturing industries of the three accession and the incumbent EU countries played the major role in improvement in competitiveness. It determined the drop in relative unit labour costs. The paper shows that changes in competitive advantages of a given country's industry reflect changes in relative (as compared to foreign) productivity rather than differences in level and changes in productivity among industries of a given country. The dynamics and levels of productivity among the Czech and Polish larger winners were lower than the manufacturing average of both countries. However, since the improvement in productivity in these industries in both countries was larger than in their incumbent EU counterparts, the former pushed the latter out of the EU market. Poland's and the Czech Republic's export specialisation in less productive industries implies that their export expansion to the EU would result in lower than potential economic growth in both countries. The paper shows that Smith's law of absolute advantages tends to determine changes in market share.competitiveness, productivity, transition economies, manufacturing industry, EU integration

Differentiation of changes in competitiveness among Polish manufacturing industries

This paper aims to show the uneven process of changes in competitiveness across Polish manufacturing industries during the period prior to Poland's EU membership (1996-2003). Based on the Schumpeterian approach to competitiveness, that is the ability to compete, it looks at changes in competitiveness as effects of competition and its factors. Using two types of measure, four clusters of Polish manufacturing industries are selected: double winners, export-led industries, export-oriented industries and losers. The analysis shows that the use of EU market share as a measure of changes in competitiveness fails to reveal differentiation in levels and changes in relative productivity in those industries that increased their EU market share. It also shows that the larger the initial differences in labour productivity across industries, the stronger the process of differentiation of changes in competitiveness. Systemic transition and external liberalisation are conducive to improvement in the competitiveness of highly productive industries, but create a weak stimulus for improvement in the competitiveness of the most backward ones. Secondly, the higher the investment rate and its dynamics, the larger the increase in competitive pressure on the EU market. This conclusion is of great importance for Polish manufacturing, all of the more so given that the potential to reduce employment seems to have been largely exhausted and investment intensity has dropped considerably, especially since 1998.competitiveness, productivity, transition economies, manufacturing industry, EU integration

Differentiation of Innovation Behavior of Manufacturing Firms in the New Member States. Cluster Analysis on Firm-Level Data

This paper investigates the differences in innovation behaviour, i.e. differences in innovation sources and innovation effects, among manufacturing firms in three NMS: the Czech Republic, Hungary and Poland. It is based on a survey of firms operating in four manufacturing industries: food and beverages, automotive, pharmaceuticals and electronics. The paper takes into account: innovation inputs in enterprises, cooperation among firms in R&D activities, the benefits of cooperation with business partners and innovation effects (innovation outputs and international competitiveness of firms' products and technology) in the three countries. After employing cluster analysis, five types of innovation patterns were detected. The paper characterises and compares these innovation patterns, highlighting differences and similarities. The paper shows that external knowledge plays an important role in innovation activities in NMS firms. The ability to explore cooperation with business partners and the benefits of using external knowledge are determined by in-house innovation activities, notably R&D intensity.Innovation patterns of firms, strategy of innovation, innovation behaviour, innovation sources, taxonomies of innovative firms, EU new member states

Differences in productivity and its determinants among firms from the Czech Republic, Hungary, Poland and Germany. The case of the cosmetics industry

The paper assesses differences in productivity and its determinants among enterprises manufacturing cosmetics and detergents (NACE 245) and located in Germany and in three EU new member states. The database collected through conducting an identical survey in Germany, Poland, Czech Republic and Hungary was used. The results of this firm-level study point on the role of the existence of 'dual economy' of some very highly and very low productive firms, especially among the small enterprises from the new member states. Productivity gap vis-a-vis Germany in this labour-intensive industry disappears in the case of some large enterprises from the CEECs. Generally, higher fixed capital intensity, higher investment rate, lower unit labour costs, more employees improving skills, and higher use of modern communication technology help in narrowing productivity gap. The paper ends with policy recommendations.productivity, enterprises, industry

Market Structure and Foreign Trade Performance in Poland

This paper examines the role of entry to and concentration of the export sector in Polish exports performance during 1992-97. Comparison with changes during the first years of transition as well as cross-sectional analysis is included. The paper shows the emergence of new tendencies in the Polish external sector as far as the role of different exporter classes in Polish export development and concentration is concerned. Furthermore, it is argued that the changes in the role of different exporter classes in Polish exports performance is correlated with their adjustment to the changes in comparative advantages of the Polish economy.entry, concentration, transitional economies, market structure, Poland, exports, foreign trade, organizational change.