Mathematics in Education, Research and Applications (MERAA), 2022(8), 2
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Published online 2023-02-28
DOI:https://doi.org/10.15414/meraa.2022.08.02.74-85
An empirical study of competitiveness and international economic growth: The case study of the EU
Martin Mariš
Slovak University of Agriculture in Nitra
Article Fulltext (PDF), pp. 74–85
- The paper's general topic considers national competitiveness, a factor suppressing the competitiveness and economic
growth of the EU member states, including the UK. The paper's main objective is to investigate possible causal links between
economic growth and competitiveness with an exclusive focus on factors which disadvantage national competitiveness. As a primary
source of data, results compiled within the Global competitiveness report (GCR 2017-2018) and provided by the World economic forum
(WEF) have been used. The national competitiveness of each member state was expressed by its unique Global competitiveness index
(GCI) elaborated according to the GCR methodology. Part of the report was an exclusive business opinion survey about general business
and entrepreneurial conditions in each state. Firstly, the probability distribution of each random variable was established. As most
problematic factors were highlighted taxes and tax regulations, inefficient state bureaucracy and restrictive labor conditions.
Subsequently, the relations between the national competitiveness (GCI), factor score, and economic growth were analyzed. The results
point to a relatively weak link between the GCI vs factor score and GCI vs economic growth, which was statistically insignificant.
However, there was a moderately strong negative correlation between the factor score and economic growth, suggesting a higher factor
score means lower economic growth and vice versa. There is a number of EU member states, including 'old' member states afflicted by
slow economic growth. Also, these states have a higher factor score. Conversely, there are states, mostly 'new' ones, which are less
developed, however, were able to achieve higher economic growth rates. In turn, their factor score is lower. Based on the results, the
possible causal relationship between the economic growth and factors suppressing the business cannot be ruled out. The position of
each EU member state is mainly a consequence of its own social-economic policy framework design and implementation.
- Keywords: competitiveness, GCI, factor score, economic growth, social-economic policy, international economics
- JEL Classification: M21, M38, E02