Competitiveness of the Slovak Republic as a Determinant of its Success in Third Country Markets

Abstract

Research background: Despite long-term goals of the economic strategy of the Slovak Republic, the Slovak competitiveness on the third countries´ markets is relatively weak considering the long tradition in the export activities of the Czechoslovak companies in the past. In terms of the international trade orientation, we note that the method of the Slovak economic strategy is mainly the pro-export support and placement of the Slovak production on foreign markets. Given the openness of the Slovak economy, competitiveness within these markets is crucial and proves the relevance of the research. Slovak Strategy of the External Economic Relations defines two groups of the priority territories for the support and subsidizing of the Slovak exports. Purpose of the article: The paper assesses the results of the strategy supporting the Slovak companies on the third markets and an aim of the paper is to define the key indicators of the competitiveness of the Slovak Republic on the third markets of the prioritized territories. Methods: Authors use basic indicators (export volumes, market share, RCA) as well as export gap method. Findings & Value added: The study indicates only a very small progress in the catching-up process of the Slovak companies in case of export competitiveness in the preferential territories outside of the EU. A comprehensive comparison of the V4 countries was realized and recommendations for a new strategy were formulated.

Assessment of the competitiveness of countries as a tool to increase the sustainability of their socio-economic development

“…Baláž [25] defines the term «competition» using the Global Competitiveness Index as it describes certain competition among the subjects operating on the market. Every subject pursues their own interests related mainly to the sale of services and products.…”

State Support for Financing Foreighn Trade Activities in the Slovak Republic

“…According to the author, it is necessary to highlight the support of state and commercial institutions towards SMEs in Slovakia in strengthening their export activities to the whole world. Harvanek and Zabojnik [4] discussed the impact of globalization on the global export market, emphasizing the increasing share of officially supported trade. The article suggests that open economies such as Slovakia and the Czech Republic need to incorporate these trends into their export policies.…”