Models of regional competitiveness: priority influencing factors

Abstract

This study examines the conceptual background to specific aspects of competitiveness and examines one of the fundamental models for improving regional competitiveness. Regional competitiveness is an important factor of achieving economic growth and increasing the well-being. It plays a decisive role in enhancing the productivity and the economic performance of state and business enterprises and can also be used as a measure for the success of these enterprises as well as the proxy for their degree of openness to national and international competition and foreign trade. Furthermore, we present a theory of the movement of labour capital between regions and countries. Moreover, we show that factor allocation deviates from the most efficient outcome when the market is not working.