Original scientific paper
Author: Filip Bugarčić
doi: 10.5937/bankarstvo1904064B
Keywords: competitiveness, composite indices, measuring competitiveness, constraints
JEL: E02, F43, O11
SCINDEX
Summary: In economic theory and practice, different aspects of competitiveness are analyzed (productivity, export-import ratio, exchange rate, institutional development, etc.). Therefore, the measurement of national competitiveness involves understanding and evaluating numerous microeconomic, macroeconomic and institutional factors determining the competitiveness of the national economy. Today, measuring competitiveness is most often associated with a framework set up by the World Economic Forum, Doing Business and Heritage Foundation. Therefore, this paper will explain in more detail the methodology used to calculate the competitiveness index of these organizations.
The paper discusses the method of assessing and ranking the competitiveness of national economies according to different composite indices (World Economic Forum, Doing Business list and Heritage Foundation), as well as limitations of individual indicators. The paper examines the hypothesis that composite indices in measuring competitiveness do not fully reflect the evolution of an economy, which will be shown by Pirson's correlation coefficient between the global competitiveness index and GDP per capita for the selected countries in the period 2012-2017.