Abstract
Wood processing industry (WPI) is a sector based on renewable natural resources of wood raw material. It can, therefore, provide sustainable growth and be competitive on the international markets. The interest of the European Union is to build economy based on renewable natural resources, meaning that it is necessary to pay increased attention to the development and support of the WPI. The aim of the article is to evaluate and compare the level and development of competitiveness of WPI in the Czech and Slovak Republics for a ten year period through the establishment of indicators based on foreign trade data of industry using mathematical and statistical methods. To reach the goal, a system of indicators measuring sectoral competitiveness was set up under the hypothesis: in the WPI the potential of competitiveness is used defi ciently. The resulting indicators have confi rmed the hypothesis and shown that, despite the fact that the WPI creates active foreign trade balance and contributes to surplus balance of the country, it achieves low values of indicators implying comparative advantage with a negative, decreasing trend, consequently meaning that industry gradually loses its competitive ability. The analysis also showed that the reason for low competitive ability of WPI is low specialization of the country in the commodity group, which was confi rmed by statistical method of correlation analysis.
Highlights
IntroductionAccording to EU, the competitiveness is defined as the ability of the firms, industries, regions, nations and transnational regions to generate a high level of income and employment, while exposed to foreign competition
The analysis showed that the reason for low competitive ability of Wood processing industry (WPI) is low specialization of the country in the commodity group, which was confirmed by statistical method of correlation analysis
The status of wood processing industry (WPI) in the foreign trade of the country is characterized by the proportion of the sector in the foreign trade of the country, and its success in foreign markets is presented by export performance of the industry
Summary
According to EU, the competitiveness is defined as the ability of the firms, industries, regions, nations and transnational regions to generate a high level of income and employment, while exposed to foreign competition. Competitiveness of countries and industries on the world markets is the basis for the theory of international trade and economic growth, while in comparison with classical and neoclassical economic theory of international trade, it highlights innovative, realistic sources of trade and economic development. There is no universally valid and generally accepted definition for the competitiveness of the sector. The balance of foreign trade is used for better understanding of competitiveness and it is, based on analyzing comparative advantages of the industry. An international trade is taken into account
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