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This paper analyzes how the exchange rate elasticity of exports has changed over time and across countries and sectors, and how the formation of global value chains has affected this relationship. The analysis uses a panel framework covering 46 countries over the period 1996-2012, and first finds evidence that the elasticity of manufacturing export volumes to the real effective exchange rate has decreased over time. The paper then examines whether the formation of supply chains has affected this elasticity using different measures of global value chain integration. Intuitively, as countries are more integrated in global production processes, a currency depreciation only improves the competitiveness of a fraction of the value of final goods exports. In line with this intuition, the analysis finds evidence that the rise of participation in global value chains explains on average 40 percent of the fall in the elasticity, and that corrections of the real effective exchange rate for participation in global value chains do not present the same decreasing pattern in elasticity.

The Pacific region is in the midst of an information and communications technology (ICT) revolution in which small island countries are increasingly connected to the global economy. The regions improving internet connectivity presents an opportunity for Pacific Island countries (PICs) to overcome their inherent limitations, and help address the long-standing issues of employment and income generation, which is vital to accelerate progress towards ending poverty and creating an inclusive society. The PICs possess unique vulnerabilities that make addressing poverty and development challenges particularly difficult and complex. The purpose of this study is to examine the feasibility of leveraging ICT to help generate job opportunities in the PICs. This is because of the positive experiences that several countries, including small island economies, have had in generating new types of employment opportunities. The study’s main focus is on cities and urban areas, given the still low availability of internet infrastructure and services in rural and remote areas and islands in the Pacific region. The study focuses specifically on the information technology (IT) - enabled global outsourcing services (GOS) industry. ICT covers diverse subsectors that include telecommunications and IT hardware and software.

The study represents a background study for the proposed Uganda Country Economic Memorandum (CEM), which seeks to address the issue of efficient use of oil resources and examine synergies between the oil industry and the rest of the economy, through growth poles or linkages. The oil industry can help Uganda to promote robust growth in the economy. However, it is important to keep in mind that it will take a number of years until oil revenues start flowing into Uganda s economy. After the Final Investment Decision (FID) is reached, it will take time to develop the oil fields and start oil production. In the meantime, there are immediate opportunities opening up for Uganda s businesses to supply the oil industry with goods and services. In most cases, Uganda s suppliers, especially micro, small and medium enterpises (MSMEs), are not expected to become first tier contractors to the International Oil Company (IOCs). The main objective of this study is to provide recommendations to the Government of Uganda (GoU) on policies and strategies of leveraging the oil discoveries for the development of the national economy in order to transform the oil resources into sustained growth. The study reviews the typology of policies for local sourcing used in the world. It includes ample examples of other countries experiences with developing their local content policies and providing support to priority sectors to boost local content which could be useful for Uganda from the standpoint of lessons learned. The study conducts a detailed analysis of the binding constraints faced by domestic oil and gas suppliers in Uganda, takes stock of existing national content support initiatives and identifies areas which are in urgent need of further support. The study examines how the oil sector can be used as a driver of agriculture and fisheries sectors in the Albertine Region and other regions of Uganda from the standpoint of food supply to the oil camps.

Since the mid-2000s price-competitiveness indicators for some euro-area countries have been providing conflicting signals. Against a stability of the producer price (PPI)-based measure, the manufacturing unit labour cost (ULCM)-deflated indicator points to a major competitiveness loss in Italy; we argue that the discrepancy mostly reflects a divergence of ULCM and PPI trends in competitor countries. Owing to the fading representativeness of labour on overall costs, price-based indicators appear to be more appropriate than those based on ULCMs to assess external competitiveness. In Italy ULC-based indicators play a less relevant role relative to price-deflated measures in explaining exports; the opposite holds true for Germany and France, whereas in Spain exports are insensitive to prices. Non-price competitiveness proves important in explaining Italian, German and, in particular, Spanish exports. Imports react to price-competitiveness dynamics only in Italy; considering the participation in global value chains is useful to correctly identify import sensitivity to domestic and foreign demand.

National audience; The French poultry sector, which still has a growing domestic demand, decreased its production during the last decade (especially for turkey). This reflects a loss of competitiveness compared to other countries, particularly European ones, which are especially well structured in productive and industrial terms and dynamic in innovation and trade. French imports of poultry meat, which come primarily from neighboring countries (Germany, Belgium and Netherlands), and much more rarely of major players in world trade (Brazil, USA, Thailand, etc.), are becoming a problem. They represent, in 2014, more than 30% of domestic consumption against 15% in 2000. Even though the French trade balance in poultry with third countries (outside European Union) (remains positive, nothing is guaranteed for the future: at the short-term the end of export refunds has not yet produced its effects and French exporters have benefited in 2014 from a favorable exchange Euro/US dollar rate; at the medium term, the competition between the major exporting areas could increase due to competitiveness gaps, the increasing openness of markets and the sensitivity of trade flows to changes in exchange rates; the number of client countries for France is limited, which increases the level of dependence on geopolitical changes; recent developments in EU rules regarding export subsidies can also affect some sectors/regions. In conclusion, attention is paid to the reason for hope for the French poultry sector: a strong momentum in global demand; a French market with high added value for some niche markets (quality poultry); the start of a restructuring of the French sector should encourage at least partial reconquest of the domestic market.; La filière avicole française, qui bénéficie encore d’une croissance de la demande intérieure, a enregistré une baisse de sa production au cours de la dernière décennie, surtout en dindes. Cette évolution traduit une perte de compétitivité par rapport à d’autres pays, notamment européens, particulièrement structurés en termes productif et industriel et dynamiques en termes d’innovations et de réseaux commerciaux. Les importations françaises de viande de volailles, qui proviennent en priorité de pays voisins (Allemagne, Belgique et Pays-Bas) et beaucoup plus marginalement des grands acteurs du commerce mondial (Brésil, USA, Thaïlande…), sont devenues préoccupantes. Elles représentent, en 2014, plus de 30% de la consommation intérieure contre un peu moins de 15% en 2000. Si la balance commerciale de la France en viande de volailles avec les pays tiers (hors Union Européenne) demeure positive, rien n’est acquis pour le futur. A court terme, la mise à zéro des restitutions n’a pas encore produit tous ses effets et les exportateurs français ont bénéficié depuis mi-2014 d’une parité entre l’euro et le dollar favorable. A moyen terme, la concurrence entre les grandes zones exportatrices pourrait s’accentuer en raison des différentiels de compétitivité, de l’ouverture croissante des marchés et de la sensibilité des flux commerciaux à l’évolution des parités monétaires. Le nombre de pays clients de la France est limité, ce qui accentue le niveau de dépendance à des considérations ciblées d’ordre géopolitique ou économique. Enfin, l’évolution récente des règles européennes relatives aux aides à l’export peut fragiliser les produits historiquement bénéficiaires. En conclusion, une attention est portée aux principales raisons d’espérer pour la filière avicole française : une forte dynamique de la demande mondiale ; un marché français à forte valeur ajoutée sur certains créneaux (volaille de qualité) ; l’amorce d’une restructuration de la filière française qui devrait favoriser une reconquête au moins partielle du marché domestique.

La filière avicole française, qui bénéficie encore d’une croissance de la demande intérieure, a enregistré une baisse de sa production au cours de la dernière décennie, surtout en dindes. Cette évolution traduit une perte de compétitivité par rapport à d’autres pays, notamment européens, particulièrement structurés en termes productif et industriel et dynamiques en termes d’innovations et de réseaux commerciaux. Les importations françaises de viande de volailles, qui proviennent en priorité de pays voisins (Allemagne, Belgique et Pays-Bas) et beaucoup plus marginalement des grands acteurs du commerce mondial (Brésil, USA, Thaïlande…), sont devenues préoccupantes. Elles représentent, en 2014, plus de 30% de la consommation intérieure contre un peu moins de 15% en 2000. Si la balance commerciale de la France en viande de volailles avec les pays tiers (hors Union Européenne) demeure positive, rien n’est acquis pour le futur. A court terme, la mise à zéro des restitutions n’a pas encore produit tous ses effets et les exportateurs français ont bénéficié depuis mi-2014 d’une parité entre l’euro et le dollar favorable. A moyen terme, la concurrence entre les grandes zones exportatrices pourrait s’accentuer en raison des différentiels de compétitivité, de l’ouverture croissante des marchés et de la sensibilité des flux commerciaux à l’évolution des parités monétaires. Le nombre de pays clients de la France est limité, ce qui accentue le niveau de dépendance à des considérations ciblées d’ordre géopolitique ou économique. Enfin, l’évolution récente des règles européennes relatives aux aides à l’export peut fragiliser les produits historiquement bénéficiaires. En conclusion, une attention est portée aux principales raisons d’espérer pour la filière avicole française : une forte dynamique de la demande mondiale ; un marché français à forte valeur ajoutée sur certains créneaux (volaille de qualité) ; l’amorce d’une restructuration de la filière française qui devrait favoriser une reconquête au moins partielle du marché domestique., The French poultry sector, which still has a growing domestic demand, decreased its production during the last decade (especially for turkey). This reflects a loss of competitiveness compared to other countries, particularly European ones, which are especially well structured in productive and industrial terms and dynamic in innovation and trade. French imports of poultry meat, which come primarily from neighboring countries (Germany, Belgium and Netherlands), and much more rarely of major players in world trade (Brazil, USA, Thailand, etc.), are becoming a problem. They represent, in 2014, more than 30% of domestic consumption against 15% in 2000. Even though the French trade balance in poultry with third countries (outside European Union) (remains positive, nothing is guaranteed for the future: at the short-term the end of export refunds has not yet produced its effects and French exporters have benefited in 2014 from a favorable exchange Euro/US dollar rate; at the medium term, the competition between the major exporting areas could increase due to competitiveness gaps, the increasing openness of markets and the sensitivity of trade flows to changes in exchange rates; the number of client countries for France is limited, which increases the level of dependence on geopolitical changes; recent developments in EU rules regarding export subsidies can also affect some sectors/regions. In conclusion, attention is paid to the reason for hope for the French poultry sector: a strong momentum in global demand; a French market with high added value for some niche markets (quality poultry); the start of a restructuring of the French sector should encourage at least partial reconquest of the domestic market.

The primary aim of this paper is to quantify the respective roles of quality and price competitiveness in the trade performance of twelve OECD countries in the first half of the 1990s. The method used combines analysis of unit values of trade, market shares and relative sizes of the economies in competition on external markets. The resulting typology indicates that national models of trade specialisation are highly diversified in the European Union. Notably, the trade performance of Germany and, to a lesser extent, France seems to be linked to product quality, whereas in the case of Italy and Spain it seems to be based more on relatively low selling prices. A proxy for the quality competitiveness of exporting countries at sectoral level is derived from this descriptive analysis and added to explanatory factors in a market-share equation. The result is a rise in the estimated price-elasticity of imports, which then becomes compatible with elasticities of substitution that are greater than unity, consistent with the underlying theoretical modelling., Dans cet article, on cherche tout d’abord à quantifier les rôles respectifs des compétitivités prix et qualité dans les performances commerciales de douze pays de l’OCDE sur la première moitié des années quatre-vingt-dix. La méthode utilisée combine l’analyse des valeurs unitaires du commerce, des parts de marché et des tailles relatives des économies en concurrence sur les marchés extérieurs. Selon la typologie qui en découle, les modèles nationaux de spécialisation commerciale seraient très diversifiés au sein de l’Union européenne. Les performances commerciales de l’Allemagne et, dans une moindre mesure, de la France seraient notablement liées à la qualité de leurs produits, tandis que les compétitivités italienne et espagnole reposeraient davantage sur des prix de vente relativement peu élevés. Une proxy de la compétitivité qualité sectorielle des pays exportateurs est tirée de cette analyse descriptive et ajoutée aux facteurs explicatifs d’une équation de parts de marché. Il en résulte une hausse des élasticités prix estimées des importations. Celles-ci deviennent ainsi compatibles avec des élasticités de substitution supérieures à l’unité, conformes à la modélisation théorique sous-jacente., Erkel-Rousse Hélène, Le Gallo Françoise. Compétitivités prix et qualité dans le commerce international : une analyse empirique des échanges de 12 pays de l’OCDE. In: Économie & prévision, n°152-153, 2002-1-2. Commerce international. pp. 93-113.

We propose a novel, multilaterally consistent productivity approach-based indicator to assess the international price competitiveness of 57 industrialized and emerging economies. It is designed to be a useful assessment tool for monetary policy authorities and, thereby, differs from previously proposed indicators, which are hardly applicable on a day-to-day basis. Special attention has been paid to an appropriate selection of price and productivity data in levels as opposed to indices, and to the treatment of country fixed effects when interpreting currency misalignments. The discussion of the results focuses on the larger economies of the sample. At the current juncture, and in contrast to the prevailing view, we find US price competitiveness to be above and China’s price competitiveness to be below its derived benchmark.

This study examines the marginal effects of traditional determinants of exports and imports with a focus on the role of price competitiveness in restoring external balances. It is a first attempt to compare marginal effects of various harmonised competitiveness indicators (HCIs) on both exports and imports of both goods and services across individual euro area countries. We find evidence that HCIs based on broader cost and price measures have a larger marginal effect (with some exceptions) on exports of goods. Exports of services are sensitive to HCIs in big euro area countries and Slovakia, where exports of services are also found more sensitive to competitiveness indicators based on broader price measures. Imports of goods and imports of services are quite insensitive to changes in relative prices. Finally, in some cases measures of fit indicate that a large unexplained residual part is present, implying that other non-price related factors might play an important role in driving foreign trade.

The nexus of improved energy access, direct health benefits and reduced indoor air pollution can be achieved in part through expanding access to clean cookstoves and fuels. This is of particular significance to approximately three billion people, mainly in South Asia and Sub-Saharan Africa, who still rely on solid fuels (traditional biomass and coal) for cooking and heating. Large-scale adoption and sustained use of clean cookstoves is not materializing due to a variety of context specific barriers both on the consumer and producer/distributor sides. While financing in terms of a lack of investment and working capital appear to be constraints for producers, lack of information, awareness, and cultural barriers dominate for consumers and should not be underestimated. Addressing these challenges requires a multi-pronged approach across four key drivers that have been identified through reviewing successful programs: awareness raising; markets and preferences; technologies and standards; and innovative financing.

Reliance on solid fuels for cooking is an indicator of energy poverty. Access to modern energy services - including electricity and clean fuels - is important for achieving the Millennium Development Goals. It can also reduce womens domestic burden of collecting fuelwood and allow them to pursue educational, economic, and other employment opportunities that can empower them and lead to increased gender equality. Similarly, the use of clean cooking and heating fuels in efficient appliances can reduce child mortality rates. Without access to modern energy services, the likelihood of escaping poverty is very low. Interventions to improve energy access to the poor have focused mainly on electricity access and have often neglected nonelectricity household energy access. Household energy for cooking in particular has received little policy attention in the overall energy sector dialogue, and consequently its lending volume remains low, in spite of the magnitude of the development challenges it represents. The objective of this note is to assist task teams with broad project design principles related to household energy for cooking. It follows five main reports produced by the World Bank Group over the last three years: (1) Household Cookstoves, Environment, Health, and Climate Change: A New Look at an Old Problem; (2) Household Energy Access for Cooking and Heating: Lessons Learned and the Way Forward; (3) One Goal, Two Paths Achieving Universal Access to Modern Energy in East Asia and Pacific; (4) Wood-Based Biomass Energy Development for Sub-Saharan Africa; and (5) What Have We Learned about Household Biomass Cooking in Central America? These reports make the case for a re-engagement of the World Bank Group in the household energy access sector. This note is organized into two sections: (a) context and background, and (b) project design principles.

The FTA negotiation between Korea and China was formally launched in May 2012. Agriculture in two countries has similar production structure and development path, but also has distinctive resource endowments and growth stages, which lead to the current price competitiveness of Chinese agricultural products in the Korean market. Recently, however, production costs in Chinese agriculture are continuously increasing so that the gaps of production costs and retail prices in most agricultural products between Korea and China are gradually narrowing. The sharp rises of input prices including agricultural wage and land rent in China are likely to threaten the price competitiveness of Chinese agricultural export. The appreciation of the Chinese currency is another driving factor bridging these gaps. In the long run, this pattern could contribute to competitiveness enhancements of Korean agricultural products over Chinese ones. Negotiation strategies taking this pattern into consideration are required to acquire more favorable concessions in the Korea-China FTA.

This paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal Demand (AID) models are estimated with monthly data to identify the price competitiveness and interdependencies of tourism demand for competing destinations in both long run (static) and short run error correction (dynamic) specifications. The homogeneity and symmetry restricted long run and short run AID models are estimated to calculate elasticities. The income elasticities, and the compensated and uncompensated own-price and cross-price elasticities, provide useful information for public and private tourism agents at the various destinations to maintain and improve price competitiveness. The empirical results show that price competitiveness is important for tourism demand for Japan, Korea and Hong Kong in the long run, and for Hong Kong and Taiwan in the short run. With regard to long run cross-price elasticities, the substitution effect can be found in the following pairs of destinations: China-Korea, Japan-Hong Kong, Taiwan-Hong Kong, Japan-Korea, and Taiwan-Korea. In addition to the substitution effect, the complementary effect can be found in the following pairs of destinations: China-Hong Kong, China-Japan, China- Taiwan, Japan-Taiwan, and Korea-Hong Kong. Contrary to the findings obtained from the long run AID specification, Japan-Korea and Taiwan-Korea are complements in the short run. Furthermore, the real total tourism expenditure elasticities indicate that China's share of real total tourism expenditure is inelastic in response to a change in real total tourism expenditure, while Korea's share of real total tourism expenditure is most sensitive to changes in expenditure in the long run. The greatest impact on the share of real total tourism expenditure in the short run is tourism demand for Taiwan.

This article analyzes the market and price situation for meat in Ukraine for 2000-2010, conducted a factor analyze of price competitiveness of the largest meat-processing enterprises in Ukraine for 2009-2010. The author proposes measures to stabilize production and meat processing in Ukraine and strengthen position in the market of agricultural and processing enterprises., В статті висвітлено стан і проблеми виробництва та переробки м’яса. Аналізується кон’юнктура ринку і цінова ситуація м’яса і м'ясопродукції України за 2000-2010 рр. Здійснено факторний аналіз цінової конкурентоспроможності продукції найбільших м’ясопереробних підприємств України за 2009-2010 роки. Обґрунтовано пропозиції щодо стабілізації виробництва та переробки м’яса в аграрному секторі економіки України та зміцнення ринкової позиції с.-г. та м’ясопереробних підприємств.

Depletion of the positive effects of fiscal policy and monetary policy in the area of referent interest rate reduction, exchange rate policy has become an instrument through which a country could find a chance to faster come out of the current economic crisis. Competitive devaluation of domestic currency increases the price competitiveness of domestic products and consequently increases the demand for domestic products in the foreign markets. However, if one country takes an action of competitive devaluation, other countries, threatened by such action, are expected to take the countermeasures, which can ultimately lead to a currency war. In this paper we examine the monetary policy of the United States, China and the European Еconomic and Monetary Union. Our goal is to identify the existence, manifestations and effects of competitive devaluations on the international monetary system. The results indicate that the U.S. uses economic unfounded arguments to put pressures on China to revalue its currency, as well as the measures aimed at depreciating dollar. Also, analysis showed that the slow reaction of the Eurozone countries in the settlement of the Greek and Irish debt crisis significantly contributed to the weakening of euro, which has a positive effect on exports from the Eurozone, especially from Germany. Because of the negative consequences that competitive devaluations could have on the stability of international monetary system, the G20 called for restraint from competitive devaluations and the coordination of macroeconomic policies, which could present an opportunity for the international monetary system reform.

Cet article étudie l’impact de l’introduction d’une mesure élargie de la compétitivité structurelle dans les équations d’exportation tirées du modèle d’Armington (1969). À partir d’un modèle en panel composé de 11 pays de la zone euro sur la période 1996-2008 et d’un indicateur de compétitivité globale, nous montrons que la compétitivité structurelle ne peut se résumer au seul facteur innovation. Nous montrons, en outre, que la prise en compte de facteurs de développement financier, de développement humain, d’efficacité des entreprises et d’infrastructure des pays considérés permet une meilleure modélisation des équations d’exportation. Cette étude apporte donc un nouvel éclairage sur les différences de performances commerciales au sein de la zone euro grâce à une mesure plus élargie de la compétitivité structurelle. Il est notamment souligné que la surperformance allemande provient d’une compétitivité-coût accrue conjuguée à des produits innovants mais également d’une politique fiscale avantageuse et d’une plus grande facilité d’accès au crédit pour les entreprises., This paper investigates the use of a widened measure of non-price competitiveness in the exports’ equations of Armington (1969). We use a panel data analysis using annual data for 11 European countries and focus on a global competitiveness indicator. Our results show that the non-price competitiveness can’t be measured only by a proxy of innovation. Therefore, we also show that non-price competitiveness is also reflected with other factors like financial and human development, firm effectiveness and countries’ infrastructure. Our study allows a better understanding of discrepancies among European countries exports’ performances. We finally show that the German export performance is mainly due to a better cost-competitiveness, to innovative products, to a lower tax burden and to a better credit access for German firms.

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Following several years of disappointing economic performance, Senegal has made an important turnaround, with real Gross Domestic Product (GDP) growth averaging over 5 percent annually during 1995-2005. This paper shows that macroeconomic and structural reforms are key factors explaining this recovery. Drivers of sound economic policy decisions in Senegal have included enhanced democratic processes, political commitment to the West African Economic and Monetary Union (WAEMU), and donor community conditionalities.

Inflation differentials within European Monetary Union (EMU) are increasingly seen as exerting adverse effects on the price competitiveness of member countries' firms and – given the common monetary policy within EMU – as being detrimental to euro-area economies, in particular to those with relatively high inflation rates. Using three simple measures of international price competitiveness for EMU countries, the paper analyses whether these indicators have displayed distinctive trends since the start of EMU and whether they converge with or diverge from their respective fundamental value. It is found that all three indicators suggest a gain in competitiveness for the German economy and a corresponding loss for Italy, Portugal and Spain. Two of the indicators, however, suggest that these trends reduce former disparities and, thus, contribute to a convergence of competitiveness within EMU while the third would imply the opposite.

This article is to be published in the review Reflets et perspectives de la vie économique, introducing the issue on the theme of structural competitiveness (RPVE, Vol. XLV, n°1, 2006). The notion of structural competitiveness is first distinguished in a brief way from the notion of price competitiveness. Then an outline of the contributions is given. The article ends up by echoing very briefly the Belgian socio-political topicality as regards competitiveness., L'article est à paraître dans la revue Reflets et perspectives de la vie économique. Il introduit le numéro consacré au thème de la compétitivité structurelle (RPVE, Tome XLV, n°1, 2006). La notion de compétitivité structurelle y est d'abord distinguée de manière schématique de la notion de compétitivité en prix. Vient ensuite un aperçu des contributions. L'article se conclut en se faisant très brièvement l'écho de l'actualité sociopolitique belge en matière de compétitivité.

У статті досліджено валютно-курсову політику НБУ як фактору цінового впливу на конкурентоспроможність українських підприємств. The paper considers the NBU`s exchange rate policy as a factor of influence on price competitiveness.

Over the last few years taxes on tourism have proliferated. Taxes on tourism increase government revenue but at the same time may reduce destination’s price competitiveness. Changes in tax policy influence on price changes which reflects on tourist demand, supply and business results of tourism industry and further may induce many negative effects upon employment, foreign currency inflow and fiscal revenues, depending on the price elasticity of demand for tourism in the analysed destination. Tourism is highly price sensitive and competition between destinations is easily distorted even by small price movements which can be caused by changes to taxes. Governments should be cautious with taxing tourism and in time informed of any changes in tourism taxation in the rival destinations. The aim of this paper is to analyse taxes which burden prices of “basket” of tourism goods and services in Dubrovnik and tourist destinations from countries which are the main competitors of Croatian tourism.

The question as to whether changes in the external environment may have caused the importance of key determinants of German exports to shift since the 1990s is addressed by estimating Germany's exports to EMU partner countries (intra exports) and to countries outside the euro area (extra exports). Analytically, this is done first by estimating single-equation error correction models across different samples. Second, an estimation applying the Saikkonen (1991) approach is carried out to test whether the long-run export behaviour of intra and extra exports has changed since the 1990s. Finally, simulations are conducted by means of error-correction models in order to reconstruct the adjustment process of both intra and extra exports following demand and price shocks.

This conference paper primarily deals with the carrying out of the fiscal reforms in transitional countries, and the aims and accomplishments that so far have been reached in this field. Furthermore, it deals with the impact of fiscal reform changes on the development of the tourism industry. Since fiscal system is the basis of every economic system, it is clear from the start that all transitional countries have had to change radically their inherited tax systems, so as to make them compatible to the market economy. The period of realization of fiscal reforms in transitional countries is not uniform ; i.e. it varies from country to country. Most of the countries have so far achieved considerable results in modernization and adaptation of their tax systems to those of the developed market economies, but there is still a long way ahead of them. To reach stability and balance of public finances fiscal system reform should include those adjustments, related to tourism sector, by which total tourism consumption will be so much burdened to keep service prices competitive and on the other hand, to ensure an optimal income for the financing of public projects. The active cooperation between fiscal and tourism policy holders is one of the most influential regulators, which provides stable and dynamic development of the tourism industry. Consequently, there are so many ways how government can stimulate viability of the tourism sector through the adjustments of the taxation system. From the tourism destination's point of view, the most important role of the fiscal system is to regulate services' price positioning among competitive tourist receiving countries, especially in the process of image creation. From another point of view, fiscal system must ensure quality financing of many projects that will ensure sustainable tourism development. The most sensitive part of running business in tourism (micro aspect) and achieving sustainable tourism development (macro aspect) is insufficient and inconstant system of stimulation directed by the government, primarily through the taxation of income. In order to encourage real estate investments (i.e. construction of new hotel capacities), foundation of new enterprises (SMEs) and additional employment in tourism sector, government should reduce or abolish income taxes for certain period of time. Furthermore, there are two macroeconomic problems, directly connected to optional taxation adjustments, which need further consideration, are decreasing of unemployment and reduction dependency on foreign products (encouraging export through tourism). By decreasing the unemployment rate, as the major problem of most transitional European countries, state authorities should satisfy basic prerequisite for the optimal utilization of tax potentials within a state economy. By adjusting tax rates and giving certain encouragement to the tourism sector development, intensive export through tourism could also be encouraged, joined by cutting unnecessary imports of goods for the purpose of tourism service making.

There are a plethora of measures of Australia’s international price competitiveness. This article provides a practitioners guide to those series. The currently available measures of international price competitiveness are found to be deficient. A theoretically sound measure is suggested and computer code is supplied to construct estimates.

The purpose of the present paper is to review the sources of France's trade surplus in recent years and to attribute trade balance movements strictly to those determinants of trade flows suggested by economic theory. These determinants are price and/or cost developments, and demand in France and in the rest of the world. A primary objective of the paper is to analyse the dynamics of adjustment of trade flows to changes in competitiveness and in relative demand. To do so, a cointegration/error-correction model is applied to flows of both imports and exports, and the estimates of key elasticities obtained are instrumental in shedding light on this question.