Economic Themes (2012) 50 (1) 1, 1-17


Dino Martellato

Abstract: The Great Recession and the debt crisis have led many countries into dangerous paths of stagnation. Under such conditions, one can view several key factors that can significantly contribute to the advancement of competitiveness of an economy. They can be different, having in mind the growth stage that a country has achieved and the historical context which the competitiveness policy must comply with. Aside from the brief insights into the dilemma comparative versus competitive advantage, the paper will examine the relationship between growth, competitiveness and real exchange rate. It will also deal with the most important competitiveness factors in the crisis period such as labor and the amount of debt. Such way of assessing the competitiveness differs from the one provided by the World Economic Forum and which is manifested through composite factors. It can be said that each country in the eurozone can be considered competitive if it succeeds to manage the surplus labor offering and minimize, at the same time, the surplus demand burdening the global saving fund, i.e. the level of debt.

Keywords:  competitiveness; the Great Recession; snowball effect; competitiveness factors; public debt

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