Is the Global Competitiveness Report the right measure of macroeconomic competitiveness

Marko Djogo () and Nenad Stanisic
Additional contact information
Marko Djogo: Faculty of Economics, University of East Sarajevo, Sarajevo,Bosnia and Herzegovina

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2016, vol. 34, issue 1, 91-117

Abstract: The purpose of this paper is to research the effect of abandoning the assumption of long-term time horizon in terms of reliability of the Global Competitiveness Report (GCR) findings. In order to achieve this goal we will compare the GCR findings with the findings of a composite index of competitiveness, named 6 BIC (Basic Indicators of Competitiveness). We have developed this index on the theoretical basis provided by Krugman, Fagerbergs, Scott, Lodge, Aiginger and others. Economists are aware that any theoretical conception, including the GCR, relies on a number of assumptions and postulations. If some of those have been under scrutiny, then the whole construction and its findings would lose their credibility. One of the most significant assumptions rooted in the Global Competitiveness Report is its longevity. In the long-term, the change in productivity level through price competitiveness certainly brings out a change in outcome competitiveness level. However, the effects in short-to-middle term are not certain. Our findings show that there is a whole range of countries whose national competitiveness is either under-estimated by the GCR (for example Russia, Turkey, Estonia, Moldova) or overvalued (Finland, Ireland, Iceland, Portugal, Spain) in short-to-middle term. The basic conclusion from the obtained results of the research is that the GCR does not provide sufficiently good view of the current competitiveness of the countries, and that this indicator needs to be extended also with other competitiveness indicators, such as those selected in our paper.

Keywords: macro-competitiveness; productivity level; basic indicators of competitiveness (search for similar items in EconPapers)
JEL-codes: E20 F40 (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.efri.uniri.hr/sites/efri.uniri.hr/file ... -stanisic-2016-1.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfe:zbefri:v:34:y:2016:i:1:p:91-117

Access Statistics for this article

More articles in Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics from University of Rijeka, Faculty of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Danijela Ujcic ().