Research into International Competitiveness in 2000–2008
Research into International Competitiveness in 2000–2008

Summary/Abstract: KTU Department of Economics and International Trade carried out the research in 1999 – 2008 that created the background for the teaching of masters and doctors in Economics and Management programs at the Department. In the period of 1999 – 2008 the journal “Engineering Economics” has accepted 85 articles, written by the researches of the Department. All the articles may be classified according to the fields of analysis into following four groups: international competitiveness of nations and companies; competition environment and international trade features in specific industries and markets; international finance and investments and risk management; economic cycles and foreign debt control. Because of the space limitations the aim of this article is to cover the first two topics with the hope to analyze the other two in the next paper. International competitiveness of nations and companies is discussed in 8 articles. It was found that competition intensity can be described by these main factors: market shares distribution, market rate of growth, market profitability. The first factor – market shares distribution – is analyzed by using mathematical-statistical methods, Stackelberg market classification and graphics market shares interpretation. The second factor – market rate of growth – can be explained in such way: when market rate of growth higher, then market capacity is bigger, and competition is not so high, and vice versa. Another way for the evaluation of the second factor can be the concept of demand for product life cycle. The third factor – market profitability – can be explained in such way: when market profitability is higher, then sellers can get higher profit and this means that competition of this market becomes higher. The competitiveness management information system maintenance includes such blocks: product line description, market segments characteristics description, market competition intensity level, product demand life cycle stage. Cluster based economic development is the key to regional competitiveness. Cluster Based Regional Competitiveness Development Model has five stages: mobilisation, cluster development, diagnosis, collaborative strategy and implementation. Competition environment and international trade features in specific industries and markets is discussed in 17 articles. It is shown that Baltic States are competing exporters of similar sectors of commodities. While demand in Eastern markets is shrinking, export conditions to the EU countries are getting more attractive. This encourages Baltic States exports to the EU. Lithuania is exporting mineral products, textiles and textile article, machinery, mechanical appliances and electrical equipment, products of chemical industries. Latvia and Estonia keep strong export positions in these sectors too. The EU internal market is supposed to be an area without any trade barriers, but there is still much to do achieving really unhampered flow of goods and services in Europe. It was found that the legal basis of the EU permits the possibility to misuse health and safety requirements as a hamper of full economic integration of the expanding EU family.

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