Competitiveness analysis of the tobacco sub-sector in the Republic of Macedonia

Emelj Tuna, Nenad Georgiev and Marina Nacka

Agroeconomia Croatica, 2013, vol. 03, issue 01, 8

Abstract: Tobacco production has a long tradition in R. Macedonia. It is an industrial crop with over 70% share in the total industrial crops area, and an average share of some 30%, in total agricultural export. As a labor intensive crop, it provides employment for the rural population and presents a social buffer for the economy and the current high unemployment rate in the country. The aggressive policies against smoking propose reduction of tobacco production, thus solution for its replacement ought to be considered for the tobacco producers in the country. The aim of this research is to investigate the competitiveness of the tobacco sector in the country based on the Porter Diamond competitiveness approach, complemented with the Ballasa index of comparative advantage. Based on the prevailing positive aspects in the competitiveness model, and the high values of the index ranging from seven to over nine for the period 2005-2010; much higher compared to selected countries in the region (Greece, Bulgaria, Turkey), our findings confirm that the country has favorable conditions and competitive advantage for producing tobacco.....Proizvodnja duhana ima dugu tradiciju u Republici Makedoniji. To je industrijska biljka s preko 70% udjela na ukupnom broju površina pod industrijskim i s prosječnim udjelom od oko 30% u ukupnom izvozu poljoprivrednih proizvoda. Kao zahtjevna biljka, osigurava posao ruralnoj populaciji i daje socijalnu zaštitu ekonomiji i trenutnoj visokoj stopi nezaposlenosti u zemlji. Agresivne kampanje protiv pušenja predlažu smanjenje proizvodnje duhana, stoga bi se trebalo pronaći rješenje čime bi ga proizvođači duhana u zemlji mogli zamijeniti. Cilj ovoga istraživanja bilo je istražiti konkurentnost duhanskog sektora u zemlji analizom konkurentnosti pomoću Porter Diamondovog modela, nadopunjenog Ballasa indeksom komparativnih prednosti. Na temelju prevladavajućih pozitivnih aspekata u modelu konkuretnosti visoke vrijednosti indeksa su u rasponu od sedam do preko devet za razdoblje od 2005.-2010.; puno više, ako se usporedi s nekim zemljana u regiji (Grčka, Bugarska, Turska). Naši rezultati potvrđuju da zemlja ima povoljne uvjete i kompetitivne prednosti za proizvodnju duhana.

Keywords: Industrial Organization; International Relations/Trade; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:csaeac:172560

DOI: 10.22004/ag.econ.172560

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