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Delocalisation Process and Changes of Competitive Advantages – A Survey of Enterprises

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  • Stoyan Totev
  • Grigor Sariiski

Abstract

The aim of this paper is to examine the link between the industrial delocalisation and the changes of the competitive advantages based on results obtained from a Survey of 756 enterprises in five EU countries. The study is enriched by providing cross-country analysis based on some secondary data indicators. An attempt is made by comparing the results from the Enterprise survey and the secondary data analysis to summarize the findings and to outline the specific features and effects of the delocalisation processes on the competitiveness of the EU countries and their firms. Patterns of development of labour intensive industries, their trade performance and countries competitiveness are related to the delocalisation processes. The study revealed that both sides participating in delocalisation processes, gain in terms of increasing their competitive advantages and profits. However, for countries like Romania and Bulgaria the delocalisation process can bring to problems in their future development due to their low profitability of working under subcontracting.

Suggested Citation

  • Stoyan Totev & Grigor Sariiski, 2009. "Delocalisation Process and Changes of Competitive Advantages – A Survey of Enterprises," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 46-57.
    • Handle: RePEc:bas:econst:y:2009:i:1:p:46-57
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    References listed on IDEAS

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    1. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank.
    2. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers.
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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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