Firm Competitiveness Determinants: Results of a Panel Data Analysis

Abstract

This paper combines results of a questionnaire survey with firm level data in order to better explain firm competitiveness. To do this, survey-based information about perceived factors is used to improve explanatory power of quantitative factors. Results from the firm level panel data model confirm that most of the top individual, sector-specific and macro factors of perceived company competitiveness are statistically significant. Different size of the effect across considered competitiveness indicators (proxied by indicators of profitability, productivity, and export performance and market share) suggests that appropriate policy measures aiming at higher overall competitiveness may vary depending on preferred definition of competitiveness. From among the factors we find that perceived impact of energy costs, EU membership and developed consumer sectors count among the most influential ones.

Keywords: competitiveness, qualitative factors, firm-level data, panel data

JEL Classification: D22, L25