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Konkurenceschopnost národních ekonomik - kritická reflexe konceptu
[Competitiveness of National Economy: Critical Reflection]

Author

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  • Oldřich Krpec
  • Vladan Hodulák

Abstract

This article is a contribution to the discussion of national competitiveness as a concept for analysis of international economic relations. The main goal is the critical reflection of the concept. We consider the Paul Krugman's and Richard Baldwin's remarks regarding the problems associated with using competitiveness as an analytical concept still valid when restrained to the domain of neoclassical economics. Moreover - even though the competitiveness is widely accepted as an analytical concept - we believe a number of problems associated with its current use exist (both in theory and in process of policy formations). Mainly, there is confusion between the micro and macro-economic understanding of concept which stems from confusion between individual and national/territorial level of analysis. We also believe that even if new trade theory (increasing returns and strategic trade) is taken into account, it is quite problematic to formulate policy recommendation for structural and industrial policy on its grounds. When the assumptions of neoclassical economics are loosened, the concept of competitiveness might prove valid. Finally we stress than even if this is the case the sensitiveness of the most of recommendations for competitiveness promotion to retaliation and potential damage resulting to international economic regime from its enforcement is rather high.

Suggested Citation

  • Oldřich Krpec & Vladan Hodulák, 2013. "Konkurenceschopnost národních ekonomik - kritická reflexe konceptu [Competitiveness of National Economy: Critical Reflection]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(6), pages 752-769.
  • Handle: RePEc:prg:jnlpol:v:2013:y:2013:i:6:id:929:p:752-769
    DOI: 10.18267/j.polek.929
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    References listed on IDEAS

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    1. Grossman, Gene M. & Helpman, Elhanan, 1996. "Rent dissipation, free riding, and trade policy," European Economic Review, Elsevier, vol. 40(3-5), pages 795-803, April.
    2. Julio J. Rotemberg, 2003. "Commercial Policy with Altruistic Voters," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 174-201, February.
    3. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    4. Mercedes Delgado & Christian Ketels & Michael E. Porter & Scott Stern, 2012. "The Determinants of National Competitiveness," NBER Working Papers 18249, National Bureau of Economic Research, Inc.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Richard E. Baldwin & Frédéric Robert-Nicoud, 2007. "Entry and Asymmetric Lobbying: Why Governments Pick Losers," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 1064-1093, September.
    7. Buchanan, James M. & Yoon, Yong J., 2000. "A Smithean Perspective on Increasing Returns," Journal of the History of Economic Thought, Cambridge University Press, vol. 22(1), pages 43-48, March.
    8. Roberto Camagni, 2002. "On the Concept of Territorial Competitiveness: Sound or Misleading?," Urban Studies, Urban Studies Journal Limited, vol. 39(13), pages 2395-2411, December.
    9. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 17-25, Autumn.
    10. Paul Krugman, 1992. "Does the New Trade Theory Require a New Trade Policy?," The World Economy, Wiley Blackwell, vol. 15(4), pages 423-442, July.
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    Cited by:

    1. Petra Čekmeová, 2016. "Konkurecieschopnosť ako cieľ hospodárskej politiky [Competitiveness as a Goal of Economic Policy]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(3), pages 338-350.

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    More about this item

    Keywords

    development; models of trade with imperfect competition and scale economies; trade policy; Regulation and Industrial Policy; Regional Economic Activity: Growth; Environmental Issues; and Changes; Size and Spatial Distributions of Regional Economic Activity;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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