Abstract:   The objective of this research is to examine the possibility of higher export level for the countries which have a higher level of competitiveness. The study has taken the Global Competitiveness Index (GCI) is a proxy for the level of Competitiveness and the countries are divided into high and low export countries based on export volume. Furthermore, the study also analyzes the relative efficacy of different components of the competitiveness index. The estimated results based on the binary probability distribution model showed a positive relationship between higher export level probability and level of Competitiveness. This result is consistent with the hypothesis that the economies having higher levels of competitiveness would have greater possibilities of generating higher exports. GCI is considered the most acceptable index for measuring the competitiveness level of a country in the globalized economic system. However, the realization of importance through empirical investigation is almost negligible, particularly for the developing countries. The results suggest that developing countries should concentrate on enhancing their competitiveness level to achieve the goal of higher exports. The result further suggested that the sub-index ?basic requirement? is more important for the enhancement of exports and countries should concentrate on improving the pillars of basic requirements for enhancing competitiveness.

Keywords:   Competitiveness, Export, GCI, World Economic Forum, Panel Probit

Publisher:   ILMA UNIVERSITY

Published:   21 July 2020

Issue:   Issue 1 : Volume 16

E-ISSN:   2409-6520

P-ISSN:   2414-8393