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Emerging Economies’ Institutional Quality and International Competitiveness: A PLS-SEM Approach

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  • Ricardo E. Buitrago R.

    (Facultad de Ciencias Naturales e Ingeniería, Universidad Jorge Tadeo Lozano, Bogotá 11001, Colombia
    Escuela de Administración, Universidad del Rosario, Bogotá 11001, Colombia)

  • María Inés Barbosa Camargo

    (Facultad de Ciencias Económicas y Sociales, Universidad de La Salle, Bogotá 11001, Colombia)

  • Favio Cala Vitery

    (Facultad de Ciencias Naturales e Ingeniería, Universidad Jorge Tadeo Lozano, Bogotá 11001, Colombia)

Abstract

The home country’s institutional framework determines the capacity to compete in the global arena. This paper discusses the linkage between institutional quality (IQ) and international competitiveness (IC). We measured institutions’ quality in emerging economies through the use of selected indicators between 2007–2017. To evaluate the proposed IQ constructs and their relationship with IC, we applied partial least squares – structural equation modeling (PLS-SEM) analysis. The model outcomes suggest that political and lack of systemic conditions have a significant and negative effect on international competitiveness, while science, technology, engineering and mathematics (STEM) resource conditions have a significant and positive effect.

Suggested Citation

  • Ricardo E. Buitrago R. & María Inés Barbosa Camargo & Favio Cala Vitery, 2021. "Emerging Economies’ Institutional Quality and International Competitiveness: A PLS-SEM Approach," Mathematics, MDPI, vol. 9(9), pages 1-18, April.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:9:p:928-:d:541088
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