Work detail

Analysis of nonprice competitiveness: Czech Republic

Author: Bc. Vojtěch Petrů
Year: 2017 - summer
Leaders: Ing. Vilém Semerák M.A., Ph.D.
Work type: Bachelors
Language: English
Pages: 60
Awards and prizes:
Abstract: In general discussion, the concept of country’s international competitiveness is frequently
used for analysing its macroeconomic performance and is usually associated with price
competitiveness, often measured by real effective exchange rate. In spite of its usefulness,
this indicator has several drawbacks, stemming from its strong assumptions. Using highly
disaggregated data from UN Comtrade trade database, a relative export price index which
accounts for non-price factors such as changes in the market power and taste or quality is
presented and utilized for examination of changes in Czech republic‘s exports
competitiveness between 1998 and 2015 in various product sections and geographical
regions. The results show that the appreciation of Czech real effective exchange rate, which
occured between 1998 and 2008, was transfered into higher export prices in a very muted
form and the improvements in quality of Czech exports were more than capable of
compensating for this increase. Major differences in quality growth between individual
product sections and exports into different locations are detected. The highest
improvements are achieved in products of Machinery, Plastics and rubber, Chemical
products, but also Metals.


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