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New Criticism on the Competitiveness Concept: A Critical Review of the Concept at the Macroeconomic Level

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  • Abdelmajid Charrass

Abstract

Competitiveness of nations has always been a subject of controversy regarding its validity. It is a concept surrounded by paradox, and it is widely used despite its conceptual fragility and the lack of a definition consensus. Moreover, this omnipresent concept in economic analysis is not included in any economic theory in the strict sense. Up to now, there is no theory of national competitiveness. Despite the abundant publications about competitiveness, a critical review of competitiveness of nation has not yet appeared. This paper is proposed as a critical review of the concept of competitiveness at the nation¡¯s level, and it aims to examine the reasons that make this concept a point of controversy among economists. This paper summarizes the rejection of the competitiveness concept in three points: Firstly, competitiveness is a microeconomic concept which gets deteriorated when applied to a nation, because nations do not compete like companies. Secondly, competitiveness is gained reputation in the political world; it is used without attention to explain success or defeat of an economy in a simplistic way. Today, the concept of national competitiveness is part of a hegemonic discourse. Finally, neither a definition consensus, nor an empirical evidence or a theoretical foundations, the national competitiveness appears such an international ideology rather than an economic concept. This doctrine is more evident with economic patriotism and the globalization that raises the frenzy of competition (Krugman, 1999).

Suggested Citation

  • Abdelmajid Charrass, 2017. "New Criticism on the Competitiveness Concept: A Critical Review of the Concept at the Macroeconomic Level," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(1), pages 190-193, January.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:1:p:190-193
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    References listed on IDEAS

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    1. Reinert, Erik S., 1995. "Competitiveness and its predecessors--a 500-year cross-national perspective," Structural Change and Economic Dynamics, Elsevier, vol. 6(1), pages 23-42, March.
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    1. Idris, Zera Zuryana & Ismail, Normaz Wana & Ibrahim, Saifuzzaman & Hamzah, Hanny Zurina, 2021. "High-Technology Trade: Does it Enhance National Competitiveness?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 35-48.

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    More about this item

    Keywords

    national competitiveness; critical review; concept; macroeconomic level;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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