Prague Economic Papers 2023, 32(2):159-183 | DOI: 10.18267/j.pep.829

Mapping of Capabilities and Export Opportunities of Czechia

Ondřej Sankot ORCID...a, Tereza De Castro ORCID...a, Jana Vlčková ORCID...a, Cristina Procházková Ilinitchi ORCID...a
a Prague University of Economics and Business, Prague, Czech Republic

Czechia is one of the most export-oriented countries, reaching high levels of economic complexity. However, its innovative capabilities remain limited. Taking these factors into consideration, we determined the country's optimal diversification path by identifying prospective export sectors which would enhance the country's competitiveness. We combine the product space and proximity methodologies on predicted export data together with a company-level analysis. We identified machinery for specialized industries and parts thereof (SITC 7284), machine-tools for specialized industries parts or accessories (SITC 7281) and power hand tools, pneumatic or non-electric, and parts thereof (SITC 7541) as the most prospective categories in terms of high complexity, expected trade volume growth, proximity to Czechia's existing production capabilities and manufacturing base operated by large, highly innovative Czech-owned firms.

Keywords: export, specialization, product complexity, comparative advantage, product relatedness, diversification
JEL classification: F14, F17, L60, O14, O33

Received: August 16, 2022; Revised: February 13, 2023; Accepted: February 17, 2023; Published: April 26, 2023  Show citation

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Sankot, O., De Castro, T., Vlčková, J., & Procházková Ilinitchi, C. (2023). Mapping of Capabilities and Export Opportunities of Czechia. Prague Economic Papers, 32(2), 159-183. doi: 10.18267/j.pep.829
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