COMPARING MEASURES OF COMPETITIVENESS

Abstract

In their Europe Agreements with the EU, the Central and Eastern European countries stated their intention of joining the Union. To ease the process of accession these countries must adjust their economies already prior to becoming an EU-member. Agriculture requires special attention, because it still represents a large share of the total economy in these countries. A better understanding of the competitiveness of agricultural products at domestic and EU markets is essential for providing the necessary economic framework to make the process of joining the EU as smooth as possible. Competitiveness can be analyzed at various levels of the economy: at the enterprise level, the sector level, or the level of the entire economy. Several measures exist for each of these levels. This paper focuses on those used for sector analysis. Since the measures commonly employed for this purpose do not deliver the same results, a better understanding of the underlying causes is necessary. This paper discusses the differences between the various indicators. It identifies the factors leading to disagreement in the results obtained.

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