Title: Microeconomic and macroeconomic determinants of competitiveness of East European countries in 2012

Authors: Nebojsa Savic; Goran Pitic; Snezana Konjikusic

Addresses: FEFA – Faculty of Economics, Finance and Administration, University of Singidunum, Bul. Zorana Djindjica 44, 11070 Novi Beograd, Serbia ' FEFA – Faculty of Economics, Finance and Administration, University of Singidunum, Bul. Zorana Djindjica 44, 11070 Novi Beograd, Serbia ' FEFA – Faculty of Economics, Finance and Administration, University of Singidunum, Bul. Zorana Djindjica 44, 11070 Novi Beograd, Serbia

Abstract: Due to the fact that competitiveness is the key indicator of sustainable economic growth, we analysed competitiveness of eight South East European (SEE-8) countries and compare them with eight Central European and Baltic (CEE-8) countries. We used one-way ANOVA and Friedman tests with p-values analysing GDPpc ppp and competitiveness ranks as well as NGC Index methodology analysing Porter's diamond. Competitive advantages of SEE-8 reside in first two elements of diamond: factor conditions and then in a part of the context for strategy and rivalry. On the other hand, there are distinct competitive disadvantages in all four elements of the diamond. For SEE-8, it is necessary to: strengthen regional infrastructure, remove trade and investment barriers, reduce market dominance and local monopolies and protect consumers; coordinate measures in financial markets; and sharing of best practices in government practice and create regional institutions and reducing corruption.

Keywords: competitiveness; Porter's diamond; productivity; Eastern Europe; economic growth; regional infrastructure; trade barriers; investment barriers; market dominance; local monopolies; consumer protection; financial markets; best practices; government practice; regional institutions; corruption.

DOI: 10.1504/IJEPEE.2014.065251

International Journal of Economic Policy in Emerging Economies, 2014 Vol.7 No.3, pp.264 - 280

Available online: 20 Oct 2014 *

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