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Competitiveness of Small Countries

In: Small Countries in a Global Economy

Author

Listed:
  • John D. Daniels

    (University of Miami)

  • Marjan Svetličič

    (University of Ljubljana)

Abstract

Discussions on country competitiveness have become widespread; however, country competitiveness means different things to different people. It is often used to mean the ability to sell more in foreign markets, a concept criticised by Krugman (1994:44) because its pursuit could lead to beggar-thy-neighbour policies and/or trade wars. Such a definition also contradicts the theory that all countries gain from international trade through comparative advantage, and it implies an acceptance of the mercantilist promotion of trade surpluses that was in vogue from about 1500 to 1800. We prefer to consider national competitiveness as a means to an end — the end being the well-being of the nation’s residents; however, we acknowledge that the measurement of well-being is fraught with difficulties, especially when predicting how the future will evolve (Daniels, 1991).

Suggested Citation

  • John D. Daniels & Marjan Svetličič, 2001. "Competitiveness of Small Countries," Palgrave Macmillan Books, in: Dominick Salvatore & Marjan Svetličič & Jože P. Damijan (ed.), Small Countries in a Global Economy, chapter 7, pages 211-230, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51319-8_8
    DOI: 10.1057/9780230513198_8
    as

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