Competitiveness and Economic Growth: A Model with Application to 105 Countries (2006 to 2017)
Keywords:
economic growth; world economic forum; global competitiveness index; basic investment; panel data
Abstract
This study aims to establish a link between economic growth and competitiveness based on data from the World Economic Forum (WEF). WEF outlines the competitiveness of countries in 12 pillars, which are grouped into three sub-indices -basic requirements, efficiency enhancers, and innovation and sophistication factors. In particular, this paper presupposes a model in which efficiency enhancers and factors of innovation and sophistication depend on the evolution of basic requirements in earlier periods. The analytical solution suggests that the level of economic activity of countries is a function of the current and lagging growth rate of basic requirements. An empirical application of the model is performed for 105 countries using the Pooled Ordinary Least Squares (POLS) and Fixed Effects (FE) methods. In sum, the results show that the level of economic activity of the countries is positively related to the competitiveness indicators, besides corroborating the conclusion of the model that the current and lagged rate of the basic factors are the main determinants of the activity level of the countries.
Downloads
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
- LaTeX Kaleidoscope* (Beta by AI)
How to Cite
References
D. Acemoglu, S. Johnson, J. Robinson (2002) Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution. 117(4), 1231-1294. https://doi.org/10.1162/003355302320935025
Daron Acemoglu, Francisco Gallego, James Robinson (2014) Institutions, Human Capital, and Development*. 6(1), 875-912. https://doi.org/10.1146/annurev-economics-080213-041119
A. Alesina, E. Spolaore, R. Enrico (2005) Trade, Growth and the Size of Countries. 1499-1542. https://doi.org/10.1016/s1574-0684(05)01023-3
Robert Baldwin (2003) Openness and Growth: What's the Empirical Relationship?. https://doi.org/10.3386/w9578
R. Barro, X. Sala-i-Martin (2003) Economic growth (2nd ed.).
N. Bloom, J. Van Reenen (2007) Measuring and Explaining Management Practices Across Firms and Countries. 122(4), 1351-1408. https://doi.org/10.1162/qjec.2007.122.4.1351
Lee Branstetter (2006) Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan's FDI in the United States. 68(2), 325-344. https://doi.org/10.1016/j.jinteco.2005.06.006
Branstetter, L; Lima, J. M; Lowell, A. Venancio (2010) Do Entry Regulations Deter Entrepreneurship and Job Creation? Evidence from Recent Reforms in Portugal. https://doi.org/10.3386/w16473
C. Calderon, L. Serven (2004) The effects of infrastructure development on growth and income distribution.
D. Canning, P. Pedroni (1999) Infrastructure and Long Run Economic Growth. 99-09.
R. Davidson, J. Mackinnon (1993) Estimation and Inference in Econometrics.
Mercedes Delgado, Christian Ketels, Michael Porter, Scott Stern (2012) The determinants of national competitiveness (NBER Working Paper No. 18249). https://doi.org/10.3386/w18249
D. Dollar, A. Kraay (2003) Institutions, trade, and growth. 50(1), 133-158.
K. Esser, W. Hillebrand, D. Messner, J. Meyer- Stamer (1994) Estudios e Informes.
J. Furman, M. Porter, S. Stern (2002) The x. 31(6), 899-933.
Marvin Goodfriend (2007) How the World Achieved Consensus on Monetary Policy. 21(4), 47-68. https://doi.org/10.1257/jep.21.4.47
W. Greene (2012) Econometric Analysis.
Gene Grossman, Elhanan Helpman (1991) Quality Ladders in the Theory of Growth. 58(1), 43. https://doi.org/10.2307/2298044
Alan Krueger, Mikael Lindahl (2001) Education for Growth: Why and for Whom?. 39(4), 1101-1136. https://doi.org/10.1257/jel.39.4.1101
P. Krugman (1996) Pop Internationalism.
P. Krugman (1996) Making sense of the competitiveness debate. 12, 17-35.
R. Levine (2005) Finance and growth: Theory and evidence.
G. Maddala, K. Lahiri (2006) Introduction to Econometrics.
T. Miller, A. Kim, K. Holmes (2014) Index of economic freedom.
Douglass North (1989) Institutions and economic growth: An historical introduction. 17(9), 1319-1332. https://doi.org/10.1016/0305-750x(89)90075-2
Aleksandra Parteka, Joanna Wolszczak-Derlacz (2013) The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors. 49(2), 84-104. https://doi.org/10.2753/ree1540-496x490206
E. Porter (1990) Vantagem competitiva: criando e sustentando um desempenho superior.
E. Porter (1998) The competitive advantage of nations (2nd ed.).
E. Porter, C. Ketels (2003) UK Competitiveness: Moving to the Next Stage, DTI Economics Paper 3.
Carmen Reinhart, Kenneth Rogoff (2010) Growth in a Time of Debt. 100(2), 573-578. https://doi.org/10.1257/aer.100.2.573
Dani Rodrik, Arvind Subramanian, Francesco Trebbi (2002) Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development. https://doi.org/10.3386/w9305
Paul Romer (1990) Endogenous Technological Change. 98(5, Part 2), S71-S102. https://doi.org/10.1086/261725
J. Sachs (2001) Macroeconomics and health: investing in health for economic development.
Åsa Johansson, Chistopher Heady, Jens Arnold, Bert Brys, Laura Vartia (2008) Taxation and Economic Growth. 620, 20. https://doi.org/10.1787/241216205486
G. Judge, W. Griffiths, R. Hill, H. Lutkepohl, T. Lee (1985) The Theory and Practice of Econometrics.
David Kaplan (2009) Job creation and labor reform in Latin America. 37(1), 91-105. https://doi.org/10.1016/j.jce.2008.10.002
Jonathan Temple (2000) Inflation and Growth: Stories Short and Tall. 14(4), 395-426. https://doi.org/10.1111/1467-6419.00116
World Economic Forum (2013) The global competitiveness report.
World Economic Forum (2017) Global Competitiviness Report.
World Economic Forum (2018) Global Competitiviness Report.
Luigi Zingales (1998) Corporate Governance. https://doi.org/10.1057/9781137336583.0335
Published
2020-08-24
Issue
Section
License
Copyright (c) 2020 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.