EXPLORING THE RELATION BETWEEN NATIONAL COMPETITIVENESS AND ECONOMIC GROWTH: THE CASE OF CEE EU MEMBER STATES

A country's economic growth and herewith the standard of living of its population are related to many factors, that are inside or outside control of policymakers, institutions, companies and individuals. The intensities and the directions of impacts of one and the other group of factors are conditional on several unconsidered factors, however, we can presume the existence of the relations between one and the other group of factors and economic growth. Although variously conceptualised and measured, a country's competitiveness comprises endogenous and exogenous variables of economic prosperity. The key goal of this paper was to find out if a country's competitiveness and its economic growth are related. As a measure of competitiveness we have used World Economic Forum's Global Competitiveness Index, as a measure of economic growth, however, GDP per capita. The research was made on the sample of Central and Eastern European EU Member States, due to their similar political past and similar opportunities after their political transformation in the beginning of 1990s. The observed period was partly the period from 2004 to 2013, when all of these countries have become members of the EU, and partly the period from 2008, when the financial and economic crisis has begun. On the basis of calculations of average growth rates and determination of ranks and their congruity we have confirmed the relation between a country's competitiveness and its economic growth. The findings show that especially some transition CEE EU Member States have recorded high growth of GDP per capita in the observed periods, which is accompanied by their higher competitiveness, and that some innovation-driven CEE EU Member States have deteriorated their positions in this regard. Our research has shown main gaps in the competitiveness of each observed country and thus, it can be used as a rough analytical foundation for deliberation of measures in the areas, where severe changes are necessary.