Institutions and Knowledge for Efficient External Trade Policy Management

In the global economic environment a competitive advantage of a country can be achieved by innovative (government) institutions. In this article we provide an overview of economic theories in relation to institutions and economic diplomacy actors in external trade policy management, analyse the co-ordination process within the European Union, as well as practices of external trade policy (process) management in five EU member states (Germany, Ireland, France, Poland and Slovenia). Our goal is to discover whether – in spite of the differencies in size, economic and institutional structure and trade orientation, there are common characteristics that should be taken into account when making a proposal for a co-ordination model that would enable a country more efficient trade policy (process) management in order to increase its influence at the international level. We confirm that institutions are of key importance for efficient external trade policy management – small countries in particular can increase their influence at the international level substantially, if they are capable of efficient process management and of making alliances with subnational actors. We stress the importance of adequate knowledge and skills of individuals involved in the process, the relevance of two way communication channels and the essence of analytical studies in decision making process.