IDEAS home Printed from https://ideas.repec.org/p/vlg/vlgwps/2005-2.html
   My bibliography  Save this paper

Benchmarking the competitiveness of nations: non-uniform weighting and non-economic dimensions

Author

Listed:
  • Bowen, Harry P.

    ()

  • Moesen, W.

    (Vlerick Leuven Gent Management School)

Abstract

This paper addresses two methodological issues concerning the construction of a composite indicator of national competitiveness. The first is the choice of weights to be used to aggregate the underlying primitive data. Most composite indicators use predetermined fixed weight values that are then applied uniformly to all countries. However, such uniform weighting fails to recognize that countries may have different policy priorities with respect to the different primitive dimensions used to form a given index. To the extent a country’s mix of priorities differs from that represented by the imposed weight pattern, the use of uniform weighting may bias measurement, and hence inferences, of relative competitiveness. We propose in this paper a procedure that allows weights to be endogenously determined and that are applied individually to each country. These country specific weights explicitly take account of a country’s own choices and performance across primitive dimensions. We illustrate our procedure by applying it to examine the widely cited Growth Competitiveness Index developed by the World Economic Forum. The second issue we address is the conceptual scope of national competitiveness indicators. Such indicators often consider only the “economic” domain when assessing relative performance. This singular focus may also bias inferences about relative performance since it ignores other national goals or priorities. We therefore broaden the scope for evaluating relative performance by combining a traditional index of competitiveness with two additional dimensions that may impinge on a country’s performance: environmental sustainability and governance. The resulting Composite Inclusive Index is formed using weights that allow that countries may choose different combinations of the three dimensions but still achieve the same level of overall performance. A performance ranking across countries is then presented based on values of the Composite Inclusive Index.

Suggested Citation

  • Bowen, Harry P. & Moesen, W., 2005. "Benchmarking the competitiveness of nations: non-uniform weighting and non-economic dimensions," Vlerick Leuven Gent Management School Working Paper Series 2005-2, Vlerick Leuven Gent Management School.
  • Handle: RePEc:vlg:vlgwps:2005-2
    as

    Download full text from publisher

    File URL: http://www.vlerick.be/en/2632-VLK/version/default/part/AttachmentData/data/vlgms-wp-2005-2.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garcia, Abraham, 2007. "National Systems of Innovations and the Role of Demand. A Cross Country Comparison," MERIT Working Papers 027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. repec:pts:wpaper:e6 is not listed on IDEAS
    3. Herciu, Mihaela & Ogrean, Claudia, 2011. "A Model for Measuring the National Global Performance and Analyzing its Determinants – The Case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 163-177, December.
    4. Coffé, Hilde & Geys, Benny, 2006. "Towards an empirical characterization of bridging and bonding social capital
      [Zur empirischen Charakterisierung von heterogenen (bridging) und homogenen (bonding) Arten des Sozialkapitals]
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2006-11, Social Science Research Center Berlin (WZB).
    5. Geys, Benny, 2007. "How to make head or tail of bridging and bonding? Adressing the methodological ambiguity
      [Wie ist ‘Briding vs. Bonding’ sozialer Netzwerke zu verstehen? Das Problem der methodischen Zweideutigkeit]
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-11, Social Science Research Center Berlin (WZB).

    More about this item

    Keywords

    Note;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vlg:vlgwps:2005-2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Isabelle Vandenbroere). General contact details of provider: http://edirc.repec.org/data/vlgmsbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.