Market competitiveness of the Czech economy in the era of globalization: Some new empirical insights

Abstract

The paper deals with market competitiveness and the performance of the Czech economy in the era of globalization, using annual time series, which spans from 1993 to 2012. Econometric techniques such as the Granger causality test and impulse response function were employed in order to verify the interactions of the Czech Republic market size (real GDP per capita), trade openness, inward FDI, REER and globalization dynamics. The findings provide a robust evidence that globalization fosters market size, growth within the context of the Czech economy. The more globalized the Czech economy becomes, the more likely it would experience real GDP per capita.