IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v53y2016icp398-408.html
   My bibliography  Save this article

Assessing global competitiveness under multi-criteria perspective

Author

Listed:
  • Pérez-Moreno, Salvador
  • Rodríguez, Beatriz
  • Luque, Mariano

Abstract

Nowadays competitiveness has become a key economic feature both in policy and in academia. The Global Competitiveness Index (GCI) of the World Economic Forum is one of the best known competitiveness indices, which measures the microeconomic and macroeconomic foundations of national competitiveness. It conceives competitiveness as the set of institutions, policies and factors that determines the level of productivity of a country. This index allows total substitutability between the twelve pillars that aim to measure the different dimensions of competitiveness, albeit partially modulated by some different weights. In this paper, we implement a multi-criteria approach with new alternative normalization and aggregation formulas for such pillars of competitiveness. In particular, we propose two innovations for the computation of the GCI: (i) a double reference point scheme in the normalization; and (ii) an aggregation function which deals with the problem of substitutability between pillars. We calculate three alternative global competitiveness indices (weak, strong and mixed) with different degrees of substitutability, as well as the mixed index without normalizing. We suggest the use of a suitable mixed index alongside the GCI.

Suggested Citation

  • Pérez-Moreno, Salvador & Rodríguez, Beatriz & Luque, Mariano, 2016. "Assessing global competitiveness under multi-criteria perspective," Economic Modelling, Elsevier, vol. 53(C), pages 398-408.
    • Handle: RePEc:eee:ecmode:v:53:y:2016:i:c:p:398-408
    DOI: 10.1016/j.econmod.2015.10.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999315003260
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2015.10.030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fagerberg, Jan & Srholec, Martin & Knell, Mark, 2007. "The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind," World Development, Elsevier, vol. 35(10), pages 1595-1620, October.
    2. Mercedes Delgado & Christian Ketels & Michael E. Porter & Scott Stern, 2012. "The Determinants of National Competitiveness," NBER Working Papers 18249, National Bureau of Economic Research, Inc.
    3. Luque, Mariano & Miettinen, Kaisa & Eskelinen, Petri & Ruiz, Francisco, 2009. "Incorporating preference information in interactive reference point methods for multiobjective optimization," Omega, Elsevier, vol. 37(2), pages 450-462, April.
    4. Ehrgott, Matthias & Tenfelde-Podehl, Dagmar, 2003. "Computation of ideal and Nadir values and implications for their use in MCDM methods," European Journal of Operational Research, Elsevier, vol. 151(1), pages 119-139, November.
    5. Raj Nallari & Breda Griffith, 2013. "Clusters of Competitiveness," World Bank Publications - Books, The World Bank Group, number 15788.
    6. Luque, Mariano & Ruiz, Francisco & Steuer, Ralph E., 2010. "Modified interactive Chebyshev algorithm (MICA) for convex multiobjective programming," European Journal of Operational Research, Elsevier, vol. 204(3), pages 557-564, August.
    7. Boltho, Andrea, 1996. "The Assessment: International Competitiveness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 1-16, Autumn.
    8. 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.
    9. Eckhard Siggel, 2006. "International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 137-159, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Petrović Jelena & Radukić Snežana & Radović Milica, 2020. "A Multicriteria Analysis on Regional Disparity of Economic and Demographic Development in the Republic Of Serbia," Economic Themes, Sciendo, vol. 58(3), pages 327-342, September.
    2. Beata Gavurova & Viera Ivankova & Martin Rigelsky & Ladislav Suhanyi, 2020. "Impact of Gender Inequalities in the Causes of Mortality on the Competitiveness of OECD Countries," IJERPH, MDPI, vol. 17(10), pages 1-17, May.
    3. Ana B. Ruiz & Mariano Luque & Oscar D. Marcenaro-Gutierrez, 2022. "On the use of Synthetic Indexes Based on Multi-Criteria Decision Making to Study the Efficiency of Teachers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(3), pages 1269-1300, October.
    4. Ranđelović Saša & Martinović Nikola, 2022. "National Competitiveness and Foreign Direct Investment in Emerging Europe," Economic Themes, Sciendo, vol. 60(1), pages 21-40, March.
    5. José Alberto Martínez-González & Vidina Tais Díaz-Padilla & Eduardo Parra-López, 2021. "Study of the Tourism Competitiveness Model of the World Economic Forum Using Rasch’s Mathematical Model: The Case of Portugal," Sustainability, MDPI, vol. 13(13), pages 1-20, June.
    6. Carayannis, Elias G. & Goletsis, Yorgos & Grigoroudis, Evangelos, 2018. "Composite innovation metrics: MCDA and the Quadruple Innovation Helix framework," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 4-17.
    7. Elena Bárcena-Martín & Samuel Medina-Claros & Salvador Pérez-Moreno, 2021. "Economic Gender gap in the Global South: How Public Institutions Matter," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 459-483, December.
    8. Luque, Mariano & Marcenaro-Gutierrez, Oscar D. & Ruiz, Ana B., 2020. "Evaluating the global efficiency of teachers through a multi-criteria approach," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    9. Benkraiem, Ramzi & Uyar, Ali & Kilic, Merve & Schneider, Friedrich, 2021. "Ethical behavior, auditing strength, and tax evasion: A worldwide perspective," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    10. Helena Corrales-Herrero & Beatriz Rodriguez-Prado, 2021. "Measuring Youth Living Conditions in Europe: A Multidimensional Cross-Country Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1077-1117, June.
    11. Anna Verenikina & John Finley & Alexei Verenikin & Maria Melanina, 2022. "Business Innovation Activity and the Fourth Industrial Revolution in Russia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 130-144.
    12. Yung-Lun Liu & Pen-Fa Ko & Jui-Te Chiang, 2021. "Developing an Evaluation Model for Monitoring Country-Based Tourism Competitiveness," SAGE Open, , vol. 11(3), pages 21582440211, September.
    13. S. I. Agabekov & E. A. Levina, 2017. "R&D in Russia – global and regional aspects," Russian Journal of Industrial Economics, MISIS, issue 4.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Areti Gkypali & Kostas Kounetas & Kostas Tsekouras, 2019. "European countries’ competitiveness and productive performance evolution: unraveling the complexity in a heterogeneity context," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 665-695, April.
    2. Popovici Oana Cristina, 2017. "International Competitiveness Versus Location Attractiveness For Fdi. A Theoretical Approach," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 199-205, February.
    3. Florian Flachenecker, 2018. "The causal impact of material productivity on macroeconomic competitiveness in the European Union," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 17-46, January.
    4. Cyrielle Gaglio, 2015. "Measuring Country Competitiveness: A Survey of Exporting-based Indexes," GREDEG Working Papers 2015-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Falciola, Justine & Jansen, Marion & Rollo, Valentina, 2020. "Defining firm competitiveness: A multidimensional framework," World Development, Elsevier, vol. 129(C).
    6. Tatyana Boikova & Sandija Zeverte-Rivza & Peteris Rivza & Baiba Rivza, 2021. "The Determinants and Effects of Competitiveness: The Role of Digitalization in the European Economies," Sustainability, MDPI, vol. 13(21), pages 1-22, October.
    7. Ülengin, Füsun & Kabak, Özgür & Önsel, Sule & Aktas, Emel & Parker, Barnett R., 2011. "The competitiveness of nations and implications for human development," Socio-Economic Planning Sciences, Elsevier, vol. 45(1), pages 16-27, March.
    8. Marta Nečadová, 2015. "Selected Approaches to Measurement of National Competitiveness and the Results of Visegrad Group in Years 2007-2014 [Vybrané přístupy k měření národní konkurenceschopnosti: výsledky zemí Visegrádsk," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2015(2), pages 22-39.
    9. Falkowski Krzysztof, 2017. "Long-Term Comparative Advantages of the Eurasian Economic Union Member States in International Trade," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(4), pages 27-49, December.
    10. David J. Brooksbank & David G. Pickernell, 1999. "Regional Competitiveness Indicators," Local Economy, London South Bank University, vol. 13(4), pages 310-326, February.
    11. Maciej Grodzicki, 2018. "Prices of Value Added and Competitiveness in Global Value Chains," SPRU Working Paper Series 2018-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    12. Janno Reiljan & Maria Hinrikus & Anneli Ivanov, 2000. "Key Issues In Defining And Analysing The Competitiveness Of A Country," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 1, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    13. Oldřich Krpec & Vladan Hodulák, 2013. "Konkurenceschopnost národních ekonomik - kritická reflexe konceptu [Competitiveness of National Economy: Critical Reflection]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(6), pages 752-769.
    14. Lechman, Ewa, 2014. "Changing patterns of export of goods versus macroeconomic competitiveness. A comparative analysis for East-Central European countries in the period 2000-2011," MPRA Paper 53639, University Library of Munich, Germany.
    15. Mulatu, Abay, 2016. "On the concept of 'competitiveness' and its usefulness for policy," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 50-62.
    16. Luque, M. & Marcenaro-Gutiérrez, O.D. & López-Agudo, L.A., 2015. "On the potential balance among compulsory education outcomes through econometric and multiobjective programming analysis," European Journal of Operational Research, Elsevier, vol. 241(2), pages 527-540.
    17. Erdoğan, Eren & Aras, Osman Nuri & Öztürk, Mustafa, 2012. "Does Overvalued Turkish Lira Affect Turkey's Foreign Trade Competitiveness?," MPRA Paper 81857, University Library of Munich, Germany.
    18. Sanjaya Lall, "undated". "Comparing National Competitive Performance: An Economic Analysis of World Economic Forum's Competitiveness Index," QEH Working Papers qehwps61, Queen Elizabeth House, University of Oxford.
    19. Mariano Luque & Ana Ruiz & Rubén Saborido & Óscar Marcenaro-Gutiérrez, 2015. "On the use of the $$L_{p}$$ L p distance in reference point-based approaches for multiobjective optimization," Annals of Operations Research, Springer, vol. 235(1), pages 559-579, December.
    20. Jiménez, Mariano & Bilbao-Terol, Amelia & Arenas-Parra, Mar, 2021. "Incorporating preferential weights as a benchmark into a Sequential Reference Point Method," European Journal of Operational Research, Elsevier, vol. 291(2), pages 575-585.

    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:eee:ecmode:v:53:y:2016:i:c:p:398-408. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.