engleski

Measuring Regional Competitiveness: Case of Croatia

The analysis of regional competitiveness intends to go beyond the usual analysis of the level of development, measured by the level of GDP, income and unemployment. Although controversial, measuring competitiveness at sub-national level remains a challenge for analysts willing to cope with the “in depth” analysis of the background of the differences of economic growth between regions (Kitson et al, 2004). By analyzing the specific dimensions of the level of regional development, it becomes possible to examine the specific needs i.e. strength and weaknesses of the individual regional units. Apart from the overall level of economic wealth, regional units also differ in many factors of competitiveness, such as level and structure of education, age structure, infrastructure, institutions, entrepreneurship levels etc. As compared to analysis of the level of economic development which aims to identify regional units that are lagging behind the national average, the competitiveness analysis includes more in-depth analytical tool. When performance of individual regional units is compared to the national average and international benchmarks, it becomes possible for the stakeholders to identify the main obstacles and priorities for policy actions to overcome the most evident shortcomings. The paper starts with review of the recent theoretical and empirical literature focused on quantitative and qualitative measuring of the regional competitiveness in the European Union, with special emphasis on transition economies. It will be followed with the chapter with detailed description of methodology and findings, its benefits and shortcomings, with special focus on European Competitiveness Index and indicators of regional competitiveness in the new EU member states. The core part of the paper focuses on empirical data and will attempt to measure competitiveness of Croatian regions as a tool for assessing disparities in the efficiency of implementation of regional development policies. Analysis rely on the main findings of the Regional Competitiveness Index project for Croatia (Jurlin et al, 2008) that was based on 120 hard data indicators and 55 survey indicators for each county. However, the paper shall go one step further to tackle several broader development issues, while focusing on comparing the differences in the aggregate results between the hard data and the survey data. It would also attempt to contrast the factors of competitiveness at the level of the business sector vs. the quality of the business environment and cluster the Croatian regions (counties) regarding their main competitive strengths and weaknesses.

Regional Competitiveness; EU; Croatia; South East Europe; Regional Competitiveness Index

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