Prague Economic Papers 2017, 26(2):213-226 | DOI: 10.18267/j.pep.605

International Competitiveness of Czech Manufacturing - A Sectoral Approach with Error Correction Model

Magdalena Olczyk1, Aleksandra Kordalska2
1 Gdansk University of Technology, Faculty of Management and Economics, Gdansk, Poland (Magdalena.Olczyk@zie.pg.gda.pl)
2 Gdansk University of Technology, Faculty of Management and Economics, Gdansk, Poland (Aleksandra.Kordalska@zie.pg.gda.pl)

The main objective of this paper is to find the determinants of the international competitiveness of the manufacturing sectors of the Czech economy, using the database of 13 manufacturing sub-sectors in 1995-2011, with the aid of ECM model. The authors research the question of how much foreign and domestic demand, the level of labour costs, the level of sector innovation intensity, the level of sector openness to foreign markets as well as sectoral labour productivity influence the changes in their trade balance. The results of the analysis conducted show substantial differences in the roles particular variables play in explaining the net exports in individual sectors. The results of the analysis indicate mostly a greater impact of the researched factors on net exports in long rather than short term.

Keywords: net exports, international competitiveness of economy, CEE economies, manufacturing, error correction model
JEL classification: C23, F14, F40, L60, O14

Prepublished online: September 8, 2016; Published: April 1, 2017  Show citation

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Olczyk, M., & Kordalska, A. (2017). International Competitiveness of Czech Manufacturing - A Sectoral Approach with Error Correction Model. Prague Economic Papers, 26(2), 213-226. doi: 10.18267/j.pep.605
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