Determining the Factors Affecting Competitiveness in Unmanned Aerial Vehicle Trade

Unmanned Aerial Vehicles (UAVs) have the potential to be game-changers on battlefields that have proved, such as the Russo-Ukrainian War and the Second Nagorno-Karabakh War. When investigated from an economic perspective, the UAV industry creates a spillover effect, and thus, many industries can be positively affected and, via international trade, provide decent work and economic growth. The study examines the variables that influence competitiveness in the UAV market. The investigation in this article included two distinct research methodologies. One employed various indexes based on relevant research, while the other utilized a panel econometric model encompassing 20 countries from 2012 to 2022. The findings of our research show the countries that have comparative advantages in product 880220 are Slovakia, Türkiye, New Zealand, Slovenia, the Czech Republic, Italy, Israel, Austria, Germany, and China; in 880230 are France, Switzerland, Canada, Brazil, and Israel. Regarding the results from Model 1, R&D increases, but military expenditure, political stability, and being a NATO member decrease the competitiveness in 880220. Results from Model 2 show that R&D decreased, political stability, and being a NATO member increased competitiveness in 880230. This underscores the importance of our research in stimulating new ideas and discussions in the field.