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  1. 1 Optimum. Studia Ekonomiczne

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  1. 1 Adamkiewicz H. G.

  2. 1 Kot S. M.

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  1. 1 2014

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How Does International Competitiveness Affect Economic Development? A Two-Phase Hypothesis

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Adamkiewicz H. G., Kot S. M.
Optimum. Studia Ekonomiczne
|
2014
|
vol. 5(71)
EN
This paper analyses the impact of international competitiveness on economic development, based on the World Economic Forum Global Competitiveness Index (GCI) and GDP/capita of 125 countries during the period 2007-2010. The results reveal two phases of the evolution of competitiveness. When GCI < 4.5 (on 1-7 scale), any improvement of a country’s competitiveness affects current development more than future development. When a country’s GCI rises above 4.5, further improvements of competitiveness will affect future development more than current development. The 4.5 competitiveness threshold is remarkably stable throughout analyzed period.
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