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Identification of the Relationships between Competitive Potential and Competitive Position of the Food Industry in the European Union

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  • Katarzyna Łukiewska

    (Department of Competitiveness of Economics, University of Warmia and Mazury in Olsztyn, ul. Oczapowskiego 2, 10-719 Olsztyn, Poland)

  • Małgorzata Juchniewicz

    (Department of Competitiveness of Economics, University of Warmia and Mazury in Olsztyn, ul. Oczapowskiego 2, 10-719 Olsztyn, Poland)

Abstract

The competitiveness of the food industry, which is among the most important areas in the Central European economy, is a significant and topical research area in economics. The sector is particularly important for long-term sustainable growth in Central European national economies. Its high competitiveness is an important stabiliser in an environment of global economic instability. This study aimed to assess the relationships between elements of competitive potential and the competitive position of the food industry in E.U. countries. The relationships between these categories were examined using econometric models with the use of panel data. The results of the spatial-temporal modelling of the panel data confirmed the significant impact of production potential on the share of exports, profitability and the synthetic competitive position index, the impact of labour productivity on all analysed competitive position ratios, the impact of labour costs on the trade coverage, profitability and overall competitive position and the positive impact of innovation on profitability. It was found that labour productivity was of the greatest importance in building a competitive position. The results of the research can be used by food industry companies and government authorities in creating competitive advantages for the food industry in international markets.

Suggested Citation

  • Katarzyna Łukiewska & Małgorzata Juchniewicz, 2021. "Identification of the Relationships between Competitive Potential and Competitive Position of the Food Industry in the European Union," Sustainability, MDPI, vol. 13(8), pages 1-13, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4160-:d:532366
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