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A Note on the Competitiveness Debate

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  • Yap, Josef T. Author_Email:

Abstract

This article deals with the concept of competitiveness. Competitiveness is technically a firm-level concept. However, it is oftentimes extended to the national level--the idea of a country's 'international competitiveness' with the following analogies: market share-->export share of country; price-->real effective exchange rate or unit labor cost; profitability-->long-run economic growth. The concept of national competitiveness is faulty, in the words of Paul Krugman it has become a 'dangerous obsession.' However, national or government policies do have an impact on firm level competitiveness. The only concept related to firm level competitiveness that can be extended to the national level without ambiguity is technological capability. Since technological capability is at the heart of competitiveness, countries must address this issue squarely. One course of action is to adopt a strategic approach to foreign direct investment--as opposed to a passive strategy--similar to what Malaysia and Singapore did.

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  • Yap, Josef T. Author_Email:, "undated". "A Note on the Competitiveness Debate," Philippine Journal of Development pjd_2004_vol__xxxi_no__1-, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:pjd_2004_vol__xxxi_no__1-a
    DOI: https://doi.org/10.62986/pjd2004.31.1a
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    References listed on IDEAS

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    1. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 39-51, Autumn.
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    3. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 17-25, Autumn.
    4. Peter Hooper & KathrynA. Larin, 1989. "International Comparisons Of Labor Costs In Manufacturing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(4), pages 335-355, December.
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    6. repec:bla:revinw:v:35:y:1989:i:4:p:335-55 is not listed on IDEAS
    7. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    8. Lall, Sanjaya, 2001. "Competitiveness Indices and Developing Countries: An Economic Evaluation of the Global Competitiveness Report," World Development, Elsevier, vol. 29(9), pages 1501-1525, September.
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