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The competitiveness versus the wealth of a country

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  • Boris Podobnik
  • Davor Horvatic
  • Dror Y. Kenett
  • H. Eugene Stanley

Abstract

Politicians world-wide frequently promise a better life for their citizens. We find that the probability that a country will increase its {\it per capita} GDP ({\it gdp}) rank within a decade follows an exponential distribution with decay constant $\lambda = 0.12$. We use the Corruption Perceptions Index (CPI) and the Global Competitiveness Index (GCI) and find that the distribution of change in CPI (GCI) rank follows exponential functions with approximately the same exponent as $\lambda$, suggesting that the dynamics of {\it gdp}, CPI, and GCI may share the same origin. Using the GCI, we develop a new measure, which we call relative competitiveness, to evaluate an economy's competitiveness relative to its {\it gdp}. For all European and EU countries during the 2008-2011 economic downturn we find that the drop in {\it gdp} in more competitive countries relative to {\it gdp} was substantially smaller than in relatively less competitive countries, which is valuable information for policymakers.

Suggested Citation

  • Boris Podobnik & Davor Horvatic & Dror Y. Kenett & H. Eugene Stanley, 2012. "The competitiveness versus the wealth of a country," Papers 1209.2813, arXiv.org.
  • Handle: RePEc:arx:papers:1209.2813
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    Cited by:

    1. Guan, Wanqiu & Gao, Haoyu & Yang, Mingmin & Li, Yuan & Ma, Haixin & Qian, Weining & Cao, Zhigang & Yang, Xiaoguang, 2014. "Analyzing user behavior of the micro-blogging website Sina Weibo during hot social events," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 395(C), pages 340-351.
    2. Chakrabarti, Anindya S., 2016. "Stochastic Lotka–Volterra equations: A model of lagged diffusion of technology in an interconnected world," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 442(C), pages 214-223.
    3. Hutzler, S. & Sommer, C. & Richmond, P., 2016. "On the relationship between income, fertility rates and the state of democracy in society," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 9-18.
    4. Paulus, Michal & Kristoufek, Ladislav, 2015. "Worldwide clustering of the corruption perception," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 428(C), pages 351-358.
    5. Luiz G A Alves & Haroldo V Ribeiro & Ervin K Lenzi & Renio S Mendes, 2013. "Distance to the Scaling Law: A Useful Approach for Unveiling Relationships between Crime and Urban Metrics," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-8, August.
    6. Kantar, Ersin & Keskin, Mustafa, 2013. "The relationships between electricity consumption and GDP in Asian countries, using hierarchical structure methods," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(22), pages 5678-5684.
    7. Schinckus, C., 2013. "Between complexity of modelling and modelling of complexity: An essay on econophysics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(17), pages 3654-3665.
    8. Tang, Pan & Zhang, Ying & Baaquie, Belal E. & Podobnik, Boris, 2016. "Classical convergence versus Zipf rank approach: Evidence from China’s local-level data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 443(C), pages 246-253.
    9. Luiz G A Alves & Renio S Mendes & Ervin K Lenzi & Haroldo V Ribeiro, 2015. "Scale-Adjusted Metrics for Predicting the Evolution of Urban Indicators and Quantifying the Performance of Cities," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-17, September.
    10. Valentina Diana RUSU & Mihaela Brîndușa TUDOSE, 2018. "The Role Of Entrepreneurship In Promoting International Competitiveness Of Cee Countries. A Panel Data Approach," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 5, pages 44-62.
    11. Tang, Yong & Luo, Yong & Xiong, Jie & Zhao, Fei & Zhang, Yi-Cheng, 2013. "Impact of monetary policy changes on the Chinese monetary and stock markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(19), pages 4435-4449.
    12. Li, Yuan & Gao, Haoyu & Yang, Mingmin & Guan, Wanqiu & Ma, Haixin & Qian, Weining & Cao, Zhigang & Yang, Xiaoguang, 2015. "What are Chinese talking about in hot weibos?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 419(C), pages 546-557.
    13. Boris Podobnik & Vuk Vukovic & H Eugene Stanley, 2015. "Does the Wage Gap between Private and Public Sectors Encourage Political Corruption?," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-15, October.

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