Original scientific paper
https://doi.org/10.1080/1331677X.2020.1812418
Aftermath of the sovereign debt crisis, the new challenges to competitiveness in Portugal
Vítor da Conceição Gonçalves
Joaquim Miranda Sarmento
Ricardo Rodrigues
Abstract
This paper focuses on the interconnections between sovereign
debt and the competitiveness of nations in the aftermath of the
recent sovereign debt crises in the Eurozone. Further, it identifies
new challenges to improving competitiveness. Based on a deductive approach, we analyse secondary data regarding sovereign
debt and competitiveness in 28 EU countries for the period from
2006 to 2017. We also look at the recent theoretical developments in the competitiveness of companies, nations, and regions
with the goal of identifying the new challenges to Portuguese
competitiveness. In the period under analysis, Greece, Ireland, and
Portugal had considerable losses in competitiveness and increases
in their sovereign debt ratio. Despite benefiting directly from
Porter’s insights into improving the country’s competitiveness, the
Portuguese sovereign debt ratio has increased steeply. A previous
analysis identified a path; however, there are new challenges such
as those associated with EU competitiveness, shared value, and
smart connected products. These need to be considered to support the creation of new strategies and policies for a small and
open economy. Based on our analysis, we argue that competitiveness-oriented policies must more explicitly consider the negative
implications of sovereign debt, and must recognize the new challenges to competitiveness.
Keywords
Competitiveness; sovereign debt; diamond model; Portugal
Hrčak ID:
301199
URI
Publication date:
31.12.2021.
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