A Study on the Impact of Various Sub Index of Competitiveness on Global Competitiveness Index–A Cross Continent Comparison

Dr. G. MADAN MOHAN; AJINA K.P

Volume : IV, Issue : IV, April - 2014

A Study on the Impact of Various Sub Index of Competitiveness on Global Competitiveness Index–A Cross Continent Comparison

Dr. G. Madan Mohan, Ajina K. P

Abstract :

The concept of global competitiveness is used to analyze the macroeconomic performance as well as the international trade trends of countries across the world. This is helpful to identify the position of each country in the global market. World Economic Forum has developed and is keeping on updating a separate index called Global Competitiveness index for 148 nations and rank the nations based on the same. The level of competitiveness depends on mainly three sub indices of Basic requirements, Efficiency enhancers, Innovation and sophistication factors. This study proposes to analyse the nature of impact exerted by these three sub indices on the competitiveness of different countries constituting their respective continents. Data pertaining to the Competitiveness index and the sub-indices have been collected

and analysed using the Statistical package of SPSS, employing the statistical tool of Step-wise Regression. Results reveal that Efficiency Enhancers is the sub index exerting the maximum impact on Competitiveness of the 148 nations considered for this study, followed by the Basic Parameters and finally by Innovation Sophestication. This trend is prevalent in Asia alone. In the case of Arabian and African countries, Basic Parameters is exerting the maximum impact followed by Efficiency

Enhancers. In the case of American and European countries, Efficiency Enhancers is exerting the maximum impact, followed by Innovation Sophestication and finally Basic Parameters.