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A Growth Theory and Competitiveness Gains Measure Linkage

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  • González, Germán

Abstract

This work provides a macroeconomic approach and a sound conceptual foundation for the notion of "competitiveness gains", so prone to multiple interpretations, and to make it fit for empirical analyses. Instead of "competitiveness" is "competitiveness gains" the relevant concept, defined as a situation where the economy experiences a higher growth rate of TFP than its competitors. We present a theoretical model of competitiveness that provides a rationale for the variations of competitiveness,associated to the behavior of related variables; then we carry out an empirical exercise which shows that our formalization supports a measurable approximation to competitiveness gains.

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File URL: http://mpra.ub.uni-muenchen.de/143/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 143.

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Date of creation: 05 Oct 2006
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Handle: RePEc:pra:mprapa:143

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Keywords: competitiveness; competitiveness gains measure; total factor productivity; trade and growth;

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  1. Robert J. Barro, 1998. "Notes on Growth Accounting," NBER Working Papers 6654, National Bureau of Economic Research, Inc.
  2. Julian Reiss, 2001. "Natural economic quantities and their measurement," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 287-311.
  3. King, Robert G. & Levine, Ross, 1994. "Capital fundamentalism, economic development, and economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 259-292, June.
  4. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
  5. Habib Ahmed & Stephen M. Miller, 1999. "The Level of Development and the Determinants of Productivity Growth," Working papers 1999-03, University of Connecticut, Department of Economics.
  6. H. Ahmed & S. M. Miller, 2002. "The level of development and the determinants of productivity growth: a cross-country analysis," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1089-1095.
  7. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
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