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

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  • Sanjaya Lall

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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  • Sanjaya Lall, "undated". "Comparing National Competitive Performance: An Economic Analysis of World Economic Forum's Competitiveness Index," QEH Working Papers qehwps61, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:qehwps:qehwps61
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    File URL: http://workingpapers.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps61.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lotero Contreras, Jorge & Posada Duque, Héctor Mauricio & Valderrama, Daniel, 2009. "Competitiveness of Colombian Departments observed from an Economic geography Perspective," Borradores Departamento de Economía 5519, Universidad de Antioquia, CIE.
    2. Claudia OGREAN, 2010. "National Competitiveness Between Concept And Reality. Some Insights For Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 49(1-2), pages 59-72, April.

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