Global Competitiveness and Potential for Higher Exports

Download

Volume 16 Issue 1 2020

Author(s):

Aamir Hussain Siddiqui
University of Karachi.
ahseconomics@gmail.com

Syed Ammad Ali
University of Karachi.

UsmanAzhar
BUITEMS.
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
Year 2020
Volume 16
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification B17, B27, F13, F16, F17, G12, O24
DOI http://dx.doi.org/10.46745/ilma.jbs.2020.16.01.02
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/16.1/2.pdf
Page 17-29
References Amar, MB and Hamdi,MT. (2012)Global Competitiveness and Economic Growth: Empirical Verificationfor African Countries, International Journal of Economics and Finance 6(4)125-131

Athari, S. A., Shaeri, K., Kirikkaleli, D., Ertugrul, H. M., &Ozun, A. (2020). Global competitiveness and capital flows: does stage of economic development and risk rating matter?.Asia-Pacific Journal of Accounting & Economics, 27(4), 426-450.

Bahmani-Oskooee, M., &Arize, A. C. (2020). On the asymmetric effects of exchange rate volatility on trade flows: evidence from Africa. Emerging Markets Finance and Trade, 56(4), 913-939.

Balassa, B. (1978) “Exports and Economic Growth: Further Evidence.” Journal of Development Economics, 5,181-189.

Belke, A., &Kronen, D. (2019). Exchange rate bands of inaction and hysteresis in EU exports to the global economy: The role of uncertainty. Journal of Economic Studies, 46(2), 335-355.

Dadgar, Y., Nazari, R., &Fahimifar, F. (2018).The Impact of Global Competitiveness Index (GCI) on Economic Growth in Iran and Some Selected Countries.OIDA International Journal of Sustainable Development, 11(12), 53-60.

Feder, Gershon (1982), “on export and economic growth”, Journal of Development Economics, 12, 59-73.

Kalim, R., Arshed, N. and Shaheen, S. (2019), “Does competitiveness moderate inclusive growth: a panel study of low-income countries”, Competitiveness Review, 29(2), 119-138.

Ketels, C.,(2010). Export competitiveness: Reversing the logic. Published on 20 October 2010.Harvard Business School. Available online: http://hbswk.hbs. edu/item/6231.html.

Kordalska, A., &Olczyk, M. (2016). Global Competitiveness and Economic Growth: A One-Way or Two-Way Relationship?.Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(1), 121-142.

Krueger, A. O. (1978). Foreign Trade Regimes and Economic Development:Liberalization Attempts and Consequences. Cambridge, MA: Ballinger Pub. Co. for NBER. Krugman, P. (1994), “Competitiveness: A dangerous obsession”, Foreign Affairs, Vol. 73, No. 2 pp28-44

Lall, Sanjaya (2001), “Competitiveness Indices and developing countries: An economic evaluation of the Global Competitiveness Report”, World Development Vol. 29, No. 6, pp. 1501-1525.

Nababan, T. S. (2019). Development Analysis of Global Competitiveness Index of ASEAN-7 Countries and Its Relationship on Gross Domestic Product. Integrated Journal of Business and Economics, 3(1), 1-14.

Petryle, V. Does the global competitiveness index demonstrate the resilience of countries to economic crisis?Ekonomika2016,95, 28-36.

Porter, M. E. (1990). The competitive advantage of nations.Harvard business review, 68(2), 73-93.

Siddiqui, AH (2018), Export Distribution, Competitiveness and Economic growth of Pakistan, (Unpublished doctoral dissertation). Institute of Business Management, Karachi-Pakistan.

Smit, A. J. (2010). The competitive advantage of nations: is Porter’s Diamond Framework a new theory that explains the international competitiveness of countries?.Southern African Business Review, 14(1).

Schwab, K., &Sala, X. (2017). The Global Competitiveness Report 2017–2018/ World Economic Forum. http://www3. weforum. org/docs/GCR2017- 2018/05FullReport/ TheGlobalCompetitivenessReport2017% E2, 80, 932018.

Santana-Gallego, M., & Pérez-Rodríguez, J. V. (2019).International trade, exchange rate regimes, and financial crises.The North American Journal of Economics and Finance, 47, 85-95.

Tyler, W. G. (1981). “Growth and export expansion in developing countries: Some empirical evidence”, Journal of Development Economics, 9, 1 (August): 121- 30.

UNCTAD, T. (2005). Development Report 2005: New Features of Global Interdependence. Geneva, UNCTAD, 130.

UNESCAP (2009). Asia Pacific Trade and Investment Report 2009: Trade-led Recovery and Beyond, Bangkok, UNESCAP.

Vieira, F. V., & MacDonald, R. (2016). Exchange rate volatility and exports: a panel data analysis. Journal of Economic Studies, 43(2), 203-221.

Wong, H. T. (2017). Exchange rate volatility and bilateral exports of Malaysia to Singapore, China, Japan, the USA and Korea.Empirical Economics, 53(2), 459-492.

Xia, R., Liang, T., Zhang, Y., & Wu, S. (2012). Is global competitive index a good standard to measure economic growth? A suggestion for improvement. International Journal of Services and Standards, 8(1), 45-57.