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Comparing National Competitive Performance: An Economic Analysis of World Economic Forum's Competitiveness Index

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Sanjaya Lall

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Abstract

Developing country policy makers worry about national competitiveness and closely watch indices ranking international competitive performance. This paper analyzes from the development economics perspective if competitiveness is a legitimate policy concern, and if the leading indices deserve the attention they get. It assesses the best known index, from the World Economic Forum, and finds grave deficiencies. The WEF definitions are too broad, the approach biased, the methodology flawed and inconsistent, and many measures vague, redundant or wrongly calculated. It concludes that competitiveness indices have weak theoretical and empirical foundations and may be misleading for analytical and policy purposes.

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File URL: http://www3.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps61.pdf
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Paper provided by Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps61.

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Handle: RePEc:qeh:qehwps:qehwps61

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  1. Nelson, Richard R. & Pack, Howard, 1998. "The Asian miracle and modern growth theory," Policy Research Working Paper Series 1881, The World Bank. [Downloadable!]
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  2. Kenny, Charles & Williams, David, 2001. "What Do We Know About Economic Growth? Or, Why Don't We Know Very Much?," World Development, Elsevier, vol. 29(1), pages 1-22, January. [Downloadable!] (restricted)
  3. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 39-51, Autumn.
  4. Scott Stern & Michael E. Porter & Jeffrey L. Furman, 2000. "The Determinants of National Innovative Capacity," NBER Working Papers 7876, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 17-25, Autumn.
  6. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June. [Downloadable!] (restricted)
  7. Boltho, Andrea, 1996. "The Assessment: International Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 1-16, Autumn.
  8. Stiglitz, Joseph E, 1996. "Some Lessons from the East Asian Miracle," World Bank Research Observer, Oxford University Press, vol. 11(2), pages 151-77, August.
  9. Jonathan Temple, 1997. "St Adam and the Dragons: Neo-classical economics and the East Asian miracle," Oxford Development Studies, Taylor and Francis Journals, vol. 25(3), pages 279-300. [Downloadable!] (restricted)
  10. Venables, Anthony J., 1996. "Trade policy, cumulative causation, and industrial development," Journal of Development Economics, Elsevier, vol. 49(1), pages 179-197, April. [Downloadable!] (restricted)
  11. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
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This page was last updated on 2009-11-10.


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