Competitiveness Indices and Developing Countries: An Economic Evaluation of the Global Competitiveness Report |
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| Institution: | 1. Department of Chemical Engineering, Faculty of Engineering, Osaka Prefecture University, 1-1 Gakuen-cho, Naka-ku, Sakai-shi, Osaka 599-8531, Japan;2. Department of Biotechnology Engineering, Faculty of Engineering, International Islamic University Malaysia, P.O. Box 10, Kuala Lumpur 50728, Malaysia;1. Norwegian School of Economics (NHH), Norway;2. NoCeT, Norway;3. University of Mannheim, Germany;4. Centre for European Economic Research (ZEW), Germany;5. University of Freiburg, Germany;6. Walter Eucken Institute, Germany;7. University of Tübingen, Germany;1. School of Forest Resources and Conservation, University of Florida, 315 Newins Ziegler Hall, Gainesville, FL 32610-0410, United States;2. Universidade Estadual de Campinas, UNICAMP/Faculdade de Tecnologia – FT, Rua Paschoal Marmo, 1888 - Jardim Nova Itália, CEP:13484-332 Limeira, SP, Brazil;3. Universidade Federal do Mato Grosso do Sul, R. UFMS, 40 - Vila Olinda, Campo Grande, MS CEP 79070-900, Brazil. |
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| Abstract: | Developing countries' policy makers worry about national competitiveness and closely watch indices ranking international competitive performance. This paper analyzes, from a development economics perspective, if competitiveness is a legitimate concern, and if the leading indices deserve the attention they get. It assesses the best-known index, The Global Competitiveness Report of the World Economic Forum, and finds deficiencies at several levels. Its definitions are too broad, the approach biased and the methodology flawed. Many qualitative measures are vague, redundant or wrong. These weak theoretical and empirical foundations reduce the value of the indices for analytical or policy purposes. |
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