Case report

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

Emelj Tuna ; Faculty of Agricultural Sciences and Food, University ‘Ss. Cyril and Methodius’, Skopje, Republic of Macedonia
Nenad Georgiev ; Faculty of Agricultural Sciences and Food, University ‘Ss. Cyril and Methodius’, Skopje, Republic of Macedonia
Marina Nacka ; Faculty of Agricultural Sciences and Food, University ‘Ss. Cyril and Methodius’, Skopje, Republic of Macedonia

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.

Keywords

Ballasa index; competitive advantage; competitiveness; tobacco; Porter Diamond

Hrčak ID:

109560

URI

https://hrcak.srce.hr/109560

Publication date:

2.9.2013.

Article data in other languages: croatian

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