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Is The Global Competitiveness Index Informative?

Author

Listed:
  • Menbere Workie

    (College of Management, Vysoká škola manažmentu (VSM), Bratislava and Institute of Economic Research, Slovak Academy of Sciences, Bratislava)

  • Edita Hekelová

    (College of Management, Vysoká škola manažmentu (VSM), Bratislava)

Abstract

This paper critically discusses whether, and to what extent, the Global Competitiveness Index (GCI) compiled by the World Economic Forum is informative, given the cross-positive effect across indicators that involve ranking of countries. The results suggest positive cross-effects between sub-indices for a group of economies in the European Union (EU) and other certain advanced economies. Economies with an advanced level of higher education and training, and a superior level of innovation, tend to experience a higher level of ranking in the global competitiveness index compared to countries with lower levels of education and innovation. The results of this study for a group of 28 EU member states during 2007-2015 reveal a heterogonous position of the EU member states despite their obvious achievement of converging income-per-capita in the same period. However, the results also indicate potential methodological inconsistencies in terms of the ranking of countries, relating to a common problem in economics, known as endogeneity or reverse causality, and based on variables that, statistically, appeared significantly correlated to each other.

Suggested Citation

  • Menbere Workie & Edita Hekelová, 2016. "Is The Global Competitiveness Index Informative?," CBU International Conference Proceedings, ISE Research Institute, vol. 4(0), pages 132-141, September.
    • Handle: RePEc:aad:iseicj:v:4:y:2016:i:0:p:132-141
    DOI: 10.12955/cbup.v4.754
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    Cited by:

    1. Gratiela Georgiana Noja & Alexandru Buglea & Ion Lala-Popa & Cecilia Nicoleta Jurcut, 2021. "The interplay between knowledge-based competitiveness, people’s good health and well-being: new empirical evidence from Central and Eastern European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(2), pages 441-466, April.
    2. Onuferová Erika & Čabinová Veronika & Matijová Mária, 2020. "Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis," Review of Economic Perspectives, Sciendo, vol. 20(3), pages 379-401, September.

    More about this item

    Keywords

    competitivenessendogeneity; Global Competitiveness Index;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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