Journal of Economics, Finance and Accounting, vol.4, no.2, pp.129-137, 2017 (Peer-Reviewed Journal)
Purpose- The aim of this study is to analyze the international competitiveness of the chemical industry of five EU member countries
(Croatia, Hungary, Latvia, Lithuania, and Poland) and Turkey, which fall into 19 economies that are in the transition stage from 2nd level
(efficiency- driven) to 3rd level (Innovation-driven) as stated in the Global Competitiveness Report classifying the countries according to
their development levels.
Methodology- The analysis was held according to STIC Rev.4 using the 2007-2015 actual export figures of the chemicals and related
products by calculating the Revealed Comparative Advantage – RCA indices explained by Balassa.
Findings- The results of the analysis show that Croatia, Hungary and Lithuania generally have rather high competitive advantage while
Turkey, Poland and Latvia generally are lack of competitiveness. Turkey, Poland and Latvia have to develop their own technologies in
producing high–tech, high value added goods in order to improve their chemical industries to a structure with competitiveness.
Conclusion- Chemical industry, as the raw material and intermediate goods supplier of many sectors, has a very important role both in
overall production and in foreign trade. The industrial development of a country increases its requirement of chemical products. In global
perspective countries aiming to improve their international competitiveness have to strengthen their chemical industry.
Keywords: Competitiveness, revealed comparative advantage, chemical industry, Turkish chemical industry, selected EU countries