Report on Productivity and Competitiveness 2023
The Productivity and Competitiveness Report 2023, the second of its kind from the Institute for Economic Analyses of the Ministry of Economy, has been prepared following the EU Council Recommendation of 20 September 2016 on National Productivity Councils (2016/C 349/01). While the previous report covered various aspects of productivity and competitiveness, this one is narrowly focused on the asymmetry in business productivity in Slovakia. Indeed, reducing asymmetries can itself contribute to productivity growth. As The Future of European Competitiveness (Report by Mario Draghi) states, Europe needs to be more productive to support for fundamental European values.
The productivity gap between foreign-owned and less productive domestic entrepreneurs in Slovakia is remarkably significant. The gap between leaders and laggards (90/10 ratio) is significant too (and one of the highest in Europe). These two perspectives (horizontal and vertical) on the productivity gap are the main focus of the present paper. Gaps are mainly a consequence of Slovakia's integration into the world economy through global value chains.
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