The concept of competitiveness, or competitive advantage, has been given numerous interpretations and tends to be ambiguous. Comparative advantage, although rigorously defined in the Ricardian trade model, is also subject to different interpretations when extended beyond the classical trade theory and, particularly, with respect to its measurement. The present paper first reviews the literature that deals with definitions and measurements of these concepts, distinguishing their main characteristics, such as macro vs. micro, static vs. dynamic, positive vs. normative, ex ante vs. ex post, as well as the different uses made of the proposed measures. Second, the paper proposes an integrated approach, in which it is demonstrated how competitiveness and comparative advantage are best related to each other and how they differ. The proposed measurement serves the purpose of quantifying the different sources of competitiveness. It is shown how it can be applied to guide policy makers in their evaluation of trade and industrial policies. The latter aspect is illustrated by reference to several applied studies using the method of analysis in the context of policy reforms in India, Mali, Kenya and Uganda. Copyright Springer Science + Business Media, LLC 2006competitiveness, comparative advantage, price distortions, policy analysis, F10, F13, F14,

The paper reviews, first, Uganda's economic policies affecting the industrial sector and analyses the international competitiveness of Uganda's manufacturing industries, using a sample of 21 firms in 12 industries. It computes indices of comparative advantage, export and domestic competitiveness and compares the Ugandan indicators with those of Kenyan firms. It also identifies the main sources and obstacles to competitiveness using a decomposition method, which breaks the unit cost indices down into their main components. The study is timely as Uganda is re-establishing a free trade zone with Kenya and Tanzania, and also faces liberalized trade with the rest of the world. The numerical results of the study suggest that Ugandan firms, although not generally cost-competitive with Kenyan and other international firms, due to the country's land-locked geography and its de-industrialization under the preceding political regimes, have benefited from a recently established business-friendly environment and are more competitive in several industries than is generally assumed. This means that they may not be able to export internationally, but they are likely to hold their ground against Kenyan imports under regional free trade.International competitiveness, comparative advantage, policy reforms, regional integration, manufacturing, Uganda,

Globalization and economic reforms typically affect the formal sector, the informal sector existing outside regulation. Yet, numerous links between them mean the informal sector is variously affected. Traditionally, the model used to explain the impact of these forces was labour market segmentation and migration: workers laid off in the formal sector increase informal labour supply, leading to wage decline and increased poverty. The author examines whether this pattern applies in India following economic reforms in the 1990s, and finds a more appropriate model, driven by expansion both in labour supply and in demand, through outsourcing, skill transfers and new enterprises.he impact of globalization and economic reforms is most directly felt by the T agents and activities of the formal sector. By its nature, the informal sector exists in the shadow of regulations. Nevertheless, there are various ways in which the informal sector is affected by economic reforms. For instance, trade liberalization, which tends to lower the prices of tradable goods, can have a similar effect on informal-sector prices, to the extent that its products are close substitutes for tradable goods and services. The informal sector can also be affected by trade liberalization through the linkage of labour markets: workers who lose their jobs in the formal sector help increase the labour supply to the informal

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Competitiveness is a hot debate between policy-makers and businessmen in the world, which has been subject to little rigorous economic analysis. We present a method that draws on economic theory to measure its sources at thefirm and industry levels, using the case of Mali. In Mali, manufactures are competitive only on their local market where protecti'on offsets a fundamental lack of comparative advantage. Regional integration and trade liberalization thus constitue major challenges and only the tsm'le sector appears to be in a position to exploit the resulting export opportunities. However, the situation is not hopeless for the other industries, and areas for improvement in firm performance and policy reform are pointed out. Given Mali's low wages, its manufacturingpotential lies in labour-intensive industries rather than in the capital-and material input-intensive activities that have predominated in the past. La concurrence est en plein ddbat entre les ddcideurs et les entreprises du monde. Cependant aucune analyse dconomique rigourme n'a &d faite rf ce sujet. Nous prhentons une analyse basbe sur la thkorie kconomique qui mesure la concurrence et dktetmine ses origines au niveau des entreprises et des industries, et utilisant comme exemple le Mali. Au Mali, les entreprises manufacturi2res ne peuvent faire la concurrence qu'au niveau local oh la protection compense un manque fondamental d'avantage comparatif: Duns ce contexte, I'intkgration rkgionale et la libkralisation du commerce constitue un Cadian grand d@, oh seulement les manufactures textiles semblent &re en position &exploiter les loumal of possibilit& offktes par l'exportation. Mais la situation n'est pas dksespkrante pour les I)eelopment autres entreprises h ou l'on peut amdiorer la productivitk. Vu les bas salaires au Mali, le Studies potentiel manufacturier rdside dans les activitks intensives en travail plut8t que celles intensives en capital et en intrants importks qui ont prkdomink dans le passk.