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Benchmarking competitiveness in transition economies

Author

Listed:
  • Clifford Zinnes
  • Yair Eilat
  • Jeffrey Sachs

Abstract

This paper constructs an indicator for the current level of international competitiveness of countries in transition. We find that Hungary is the most competitive country in the group while Turkmenistan is the least. Competitiveness measurement, in our view, is a way to use uniform criteria to gauge the extent to which a country makes use of various levers to promote sustained improvements in its well‐being. We construct our measure of competitiveness drawing upon both the popular literature on competitiveness as well as modern economic theory. The approach acknowledges the importance of synergies between firms, markets, and government and, above all, the crucial role of institutions. Our choice of variables stresses the special characteristics of transition countries. By bringing to bear all the existing data on these countries, together with new survey data collected for the purpose, we are able to go beyond the mere ranking of countries to decompose the sources of competitiveness into their constituent parts. This allows policy makers to identify areas where their countries are lagging behind relative to other countries in their region. Our indicator is also compatible with the Global Competitiveness Report series categories, thus allowing us to benchmark transition countries against the rest of the world. JEL classification: C82, O47, O57, P27, P52.

Suggested Citation

  • Clifford Zinnes & Yair Eilat & Jeffrey Sachs, 2001. "Benchmarking competitiveness in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 315-353, July.
    • Handle: RePEc:bla:etrans:v:9:y:2001:i:2:p:315-353
    DOI: 10.1111/1468-0351.00078
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    Citations

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    Cited by:

    1. Benáček, Vladimír & Gács, János, 2002. "Catching Up and EU Accession - Conditions for Fast Real Convergence in the Candidate Countries," MPRA Paper 60028, University Library of Munich, Germany.
    2. Montejano García, Salomón & Campos García, Rocio Montserrat & García Ramírez, Ricardo, 2017. "Ventajas competitivas en empresas manufactureras, resultado de los sistemas de producción y la innovación," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 1(1), pages 53-70, July.
    3. Zalewski, Romuald I. & Skawinska, Eulalia, 2002. "Determinants of Quality Management Efficiency in Polish Food Processing Industry," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24891, European Association of Agricultural Economists.
    4. Petrylė Vaiva, 2016. "Does the Global Competitiveness Index Demonstrate the Resilience of Countries to Economic Crises?," Ekonomika (Economics), Sciendo, vol. 95(3), pages 28-36, December.
    5. Jože P. Damijan & Matija Rojec & Maja Ferjančič, 2011. "The Growing Export Performance of Transition Economies: EU Market Access versus Supply Capacity Factors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 489-509, December.
    6. Vladimír Benáček, 2003. "Historical perspectives of growth, integration and policies for catching-up in transition countries," Prague Economic Papers, Prague University of Economics and Business, vol. 2003(1), pages 3-17.
    7. Jože P. Damijan & Matija Rojec & Maja Ferjančič, 2011. "Growing Export Performance of Transition Economies: EU Market Access versus Supply Capacity Factors," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 489-509.
    8. Jože Damijan & Črt Kostevc & Matija Rojec, 2015. "Bright past, shady future? Past and potential future export performance of CEE countries in a comparative perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 306-335, September.
    9. Marcin Piatkowski, 2002. "The 'New Economy' and Economic Growth in Transition Economies: The Relevance of Institutional Infrastructure," WIDER Working Paper Series DP2002-62, World Institute for Development Economic Research (UNU-WIDER).
    10. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).
    11. H Ingham & M Ingham, 2003. "State transitions in Polish agriculture," Working Papers 541970, Lancaster University Management School, Economics Department.
    12. Eilat, Yair & Zinnes, Clifford, 2002. "The Shadow Economy in Transition Countries: Friend or Foe? A Policy Perspective," World Development, Elsevier, vol. 30(7), pages 1233-1254, July.
    13. Richard Kasa, 2012. "Measuring Innovation Potential at SME Level with a Neurofuzzy Hybrid Model," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    14. Diagne, Youssoupha S & Fall, Alsim, 2007. "Impact des infrastructures publiques sur la productivité des entreprises au Sénégal [Impact of public infrastructures on firms productivity in Senegal]," MPRA Paper 54809, University Library of Munich, Germany.
    15. Margit Schratzenstaller, 2003. "Zur Steuerreform 2005," WIFO Monatsberichte (monthly reports), WIFO, vol. 76(12), pages 879-900, December.
    16. Yelena Kalyuzhnova & Michael Kaser, 2006. "Prudential Management of Hydrocarbon Revenues in Resource-rich Transition Economies," Post-Communist Economies, Taylor & Francis Journals, vol. 18(2), pages 167-187.
    17. Adamkiewicz Hanna G., 2019. "The dimensions of national competitiveness: The empirical analysis based on The World Economic Forum’s data," Economics and Business Review, Sciendo, vol. 5(3), pages 92-117, September.
    18. Román, Zoltán, 2002. "A kutatás-fejlesztés teljesítményértékelése [Evaluating the performance of research and development]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 334-347.
    19. Slavo Radosevic, 2004. "A Two‐Tier or Multi‐Tier Europe? Assessing the Innovation Capacities of Central and East European Countries in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, vol. 42(3), pages 641-666, September.
    20. Pawlak, Karolina & Poczta, Walenty, 2008. "Pozycja Konkurencyjna Polskiego Sektora Rolno-Spożywczego Na Jednolitym Rynku Europejskim," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(141).
    21. Danijela Despotovic & Slobodan Cvetanovic & Vladimir Nedic & Milan Despotovic, 2019. "Social Aspects of Sustainable Competitiveness in the Selected European Countries in the Period 2012–2015," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 841-860, January.
    22. Marcin Piatkowski, 2003. "The "new economy" and catching-up potential of transition economies," Prague Economic Papers, Prague University of Economics and Business, vol. 2003(1), pages 37-56.

    More about this item

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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