Determinants of competitiveness : the case of Slovenia and other CEE economies

Abstract

This chapter presents theoretical and empirical investigations of the national competitiveness concept. It gives an overview of the competitiveness of the Slovenian economy within the group of Central and Eastern European (CEE) countries acceding to the EU in May 2004 and discusses the main determinants of competitiveness and its measurement. The main conclusion reached is that if Slovenia is to enhance its export competitiveness, the restructuring of existing enterprises is needed. This implies that entrepreneurs and managers, as well as workers' unions and policy-makers, should adopt strategies that are best suited for gaining international competitive advantage. In order to improve its competitiveness Slovenia needs further to reduce the role of the state in the economy as well as implement reforms for achieving the environment conducive to entrepreneurship, innovation and technological advancement. Improving framework conditions for enterprises, and facilitating adjustment processes should remain at the core of the national growth policy.