International Competitiveness of Czech Manufacturing - A Sectoral Approach with Error Correction Model

Abstract

The main objective of this paper is to find the determinants of the international competitiveness of the manufacturing sectors of the Czech economy, using the database of 13 manufacturing subsectors in 1995-2011, with the aid of ECM model. The authors research the question of how much foreign and domestic demand, the level of labour costs, the level of sector innovation intensity, the level of sector openness to foreign markets as well as sectoral labour productivity influence the changes in their trade balance. The results of the analysis conducted show substantial differences in the roles particular variables play in explaining the net exports in individual sectors. The results of the analysis indicate mostly a greater impact of the researched factors on net exports in long rather than short term.

Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

“…The error correction coefficient of −1.032, which is the speed of adjustment, shows the rate at which the variables adjust to or converge towards long-run equilibrium. This indicates that past deviations are corrected within one year (Olczyk and Kordalska, 2017;Adeleye et al, 2020). The observed magnitude of the error correction coefficient (>100%) aligns with the extant studies of Rao and Singh (2005), Muse and Usman (2013), Adeleye et al (2018), Eke (2018), which report adjustment rates of −1.114, −1.107, −1.043 and −1.009 respectively.…”

Modeling Sectoral Employment in Saudi Arabia

“…(For the details of correction and overcorrection processes, see Loayza and Ranciere 2005;Enders 2015, pp. 374, 377-378;Shittu, Yemitan, and Yaya 2012;Olczyk and Kordalska 2017. ) Second, wage growth has statistically significant contemporaneous negative impact on the employment growth in all the sectors, except for the government service sector.…”

Constraints on the performance and competitiveness of Tanzania’s manufacturing exports

“…Consistent with other studies, our analysis includes the following set of variables referred to as Control in Equation 1: institutional quality, foreign demand, GVC index/imported intermediate inputs, domestic demand, inflation, RER, tariff, labour productivity, FDI, and mobile cellular phone subscriptions per 100 people as a proxy for the telecommunications aspect of infrastructure (Hassan 2017;Hossain 2011;Kadir 2016;Lee et al 2016;Martina et al 2015;Muhammad et al 2006;Muratoglu and Muratoglu 2016;Olczyk and Kordalska 2017a;Villarreal and Ahumada 2015).…”

“…In periods of slackened domestic demand, firms may try to compensate for the decline in domestic sales through increased effort to export and vice versa. At the same time, it can also increase it as some export entrepreneurs do not limit exports if they had made substantial prior investment in entering foreign markets (Boansi et al 2014;Esteves and Rua 2013;Olczyk and Kordalska 2017a).…”