THE IMPACT OF COMPETITIVENESS ON EXPORT PERFORMANCE OF THE REPUBLIC OF MACEDONIA

Year 2018, Volume: 1 Issue: 1, 23 - 45, 21.12.2018

Violeta Madzova

Abstract

The
benefits of the increased competitiveness are discussed in the context of the
superior national productivity, achieving higher GDP growth, but as well higher
export with positive implications on the trade and current account balance. The Republic of Macedonia, as a small an open
economy, continuously works on improving its national competitiveness, which in parallel with the aspiration
towards the EU accession process, became its strategic
interest too. Although
in the recent decade, there is a trend of improved competitiveness in Republic
of Macedonia, the progress is much slower than in other EU countries with
limited impact on its export performance. Therefore,
the aim of this paper is to analyze   if the competitiveness made an impact on different
aspect of export performance such as: export growth, export market size growth,
as well as trade and current account balance. Using
the trend and regression analysis, for the period 2005-2015, this paper
presents that there is still positive correlation between competitiveness and
the exports of goods and services but close to the critical level of t-value
(2,25) and the statistical significance of 95%.However the exports  growth and other export performance indicators
show  some discrepancies from the basic
findings,  which are in details presented
in the paper.

Keywords

competitiveness, export growth, market share growth, trade balance

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