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The competitive abilities analysis of processing industry of the Slovak republic

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  • Viktória Bobáková
  • Jaroslava Hečková
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    Abstract

    The competitive ability of the processing industry in the SR occurs most often in classical types of production characterised by lower level of added value. Commodities with a low added value participate in worsening the balance of trade of the SR. The high export demand of industrial production also contributes to it. The changes in branch structure of processing industry of the SR are continuously reflected in a change of foreign trade structure. Its orientation is on the products less demanding and primarily on raw materials and energetic sources. In spite of this there is visible the tendency to be focused on exports in lower added value products in Slovak processing industry. The worsening of Slovak processing industry status is visible in the commodities where the export is confronted with new industrialized countries production (mainly in textile industry) but also with countries so-called "mono-cultural" (food, drinks, tobacco). In the given examples there is a strong tendency in the SR to lower the trade volume with these commodities. The analysis results show the increase of traffic means in Slovak foreign trade. Automobile industry is coming to the top and it has become the basic branch of the Slovak industry. The trend of development is from one point of view positive not only from the point of view of volume but also from the investment structures from the side of big investors. But on the other hand the SR has become, by this development, more sensible to fluctuation on the world markets. Processing industry is behind in its competitive ability in comparison with high-tech branches. The causes of it are low expenditures for research and development that should be used in these branches and they subsequently cause the low level of creating the level of added value. Marked falling behind in competitive ability of these branches is shown in their low shares in a foreign trade.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Politická ekonomie.

    Volume (Year): 2007 (2007)
    Issue (Month): 4 ()
    Pages: 490-507

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    Handle: RePEc:prg:jnlpol:v:2007:y:2007:i:4:id:610:p:490-507

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    Related research

    Keywords: manufacturing; theoretical aspects of competitiveness; competitive ability; competitive advantage; Revealed Comparative Advantage (RCA); Michaely index; Method of market segmentation; technological intensity of production;

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