*2.5. Stage 5: Competitiveness Ranking*

The application of the four indexes results in the identification of the products which demonstrate advantages in all four cases (hereinafter referred to as "competitive"), as well those for which the advantages do not intersect ("non-competitive") and those for which at least one of the parameters shows an advantage ("conditionally competitive" and "marginally competitive" depending on the degree of the production advantage). At stage 5, the products are distributed among the groups according to their competitiveness rankings (Table 2).

When *RCA* > 1, *RTA* > *0*, *LI* > 0, and *DRC* < 1, a product *j* is recognized as competitive (C group) with comparative, trade, competitive, and production advantages. If a product demonstrates an advantage on any of RCA, RTA, or LI indexes and at the same time possesses a production advantage, it is defined as conditionally competitive (CC group). For the products for which *DRC* > 1, an arithmetical average of *RCAMC*<sup>+</sup>*NC*, *RTAMC*<sup>+</sup>*NC*, and *LIMC*<sup>+</sup>*NC* is calculated. Those products for which all three values of *RCAav*, *RTAav*, and *LIav* are below *RCAMC*<sup>+</sup>*NC*, *RTAMC*<sup>+</sup>*NC*, *LIMC*<sup>+</sup>*NC*, respectively, are recognized as non-competitive. The products for which at least one of the values of *RCAav*, *RTAav*, and *LIav* is above *RCAMC*<sup>+</sup>*NC*, *RTAMC*<sup>+</sup>*NC*, *LIMC*<sup>+</sup>*NC*, respectively, are distributed to the MC group. Based on the identified competitiveness parameters, group-differentiated policy measures are suggested to support, promote, and protect the advantages.


**Table 2.** Grouping of products on their competitiveness.

Note: RCA—revealed comparative advantage, RTA—relative trade advantage, LI—Lafay competitive advantage, DRC—domestic resource cost. Source: Authors' development.
