2017 Vol. 9 №2

What makes countries competitive? What economic policies effectively influence country competitiveness? The aim of this research paper is to analyse country competitiveness empirically, in order to explore the factors that make countries competitive. This can allow governments to structure their business environment differently, and to elaborate strategies aimed at improving their countries’ overall competitiveness. Economic size and trading conditions have proven important for economic success throughout history. Individual competitiveness and business competitiveness are commonly talked about. The author analyses the overall economic competitiveness of countries. The author argues that trade is subject to various factors, including entrepreneurship and economic openness. Competitiveness is analysed in this current research, using IMD World Competitiveness Yearbook data for 55 countries in the estimation sample. This unique research applies a Multinomial Logistic procedure, and a Heckman Two-Step procedure in its accountancy for market size, exports, openness, and foreign direct investment. The business environment factors for estimation are highlighted. Also, several macro-economic modifications of the basic model specification are tested, providing further empirical analysis. Results indicate that the ten most competitive countries tend to be driven by foreign direct investment, exports and entrepreneurship.

This article aims to explore the prospects for the development of international trade and the impact of trade on increasing competitiveness of Saint Petersburg. To this end, the authors study the theoretical aspects of regional competitiveness as such, analyse the ten years’ data on the city’s international trade, and explore the significance of image, reputation, and information support for the region’s international trade provided by business information centres abroad. The authors employ the methods of expert opinion and statistical analysis as well as the authors’ own data to consider the problems of international trade development in Saint Petersburg and the ways to improve the city’s competitiveness. The authors estimate the international trade performance of Saint Petersburg and outline the key areas for increasing the city’s competitive ability. This article has theoretical and practical significance for experts studying regional competitiveness, for regional authorities, and the business community.