
Published online:
22 August 2013
Published in print:
23 July 2010
Online ISBN:
9780262289320
Print ISBN:
9780262013963
Contents
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Principle 1: Competitiveness Is a Complex Issue Principle 1: Competitiveness Is a Complex Issue
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Twelve Pillars Twelve Pillars
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First Pillar: Institutions First Pillar: Institutions
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Second Pillar: Physical Infrastructures Second Pillar: Physical Infrastructures
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Third Pillar: Macroeconomic Stability Third Pillar: Macroeconomic Stability
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Fourth Pillar: Basic Human Capital Fourth Pillar: Basic Human Capital
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Fifth Pillar: Higher Education and Training Fifth Pillar: Higher Education and Training
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Sixth Pillar: Goods Market Efficiency Sixth Pillar: Goods Market Efficiency
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Seventh Pillar: Labor Market Efficiency Seventh Pillar: Labor Market Efficiency
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Eighth Pillar: Financial Market Efficiency Eighth Pillar: Financial Market Efficiency
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Ninth Pillar: Technological Readiness Ninth Pillar: Technological Readiness
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Tenth Pillar: Market Size Tenth Pillar: Market Size
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Eleventh Pillar: Business Sophistication Eleventh Pillar: Business Sophistication
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Twelfth Pillar: Innovation Twelfth Pillar: Innovation
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Principle 2: Stages of Development Principle 2: Stages of Development
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Constructing the Index Constructing the Index
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Principle 3: Transitions Principle 3: Transitions
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Final Thoughts Final Thoughts
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Notes Notes
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References References
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Chapter
1. The Economics behind the World Economic Forum’s Global Competitiveness Index
Get access
Pages
1–18
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Published:July 2010
Cite
Sala-i-Martin, Xavier, 'The Economics behind the World Economic Forum’s Global Competitiveness Index', in Paul De Grauwe (ed.), Dimensions of Competitiveness (Cambridge, MA , 2010; online edn, MIT Press Scholarship Online, 22 Aug. 2013), https://doi.org/10.7551/mitpress/9780262013963.003.0001, accessed 4 May 2025.
Abstract
This chapter analyzes the conceptual framework underlying the concept of competitiveness used by the World Economic Forum, and identifies the conditions in which countries can achieve and maintain sustainable levels of productivity growth. Competitiveness is defined as the set of institutions, policies, and factors that determine the level of productivity of a country, which, in turn, sets the sustainable level of prosperity that can be earned by an economy. This definition of competitiveness contrasts with a flawed, but popular, one that sees competitiveness of a nation as a zero-sum game in which one country’s gain is another’s loss.
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