| Measuring Competitiveness as a Precondition of Economic Management | Mjerenje konkurentnosti kao preduslov upravljanja privredom |
| Management, [pdf] | Menadžment, [pdf] |
| ID: 7.2010.57.6 Number: 57 Year: 2010 UDC: 38:339.137.2(497.16)“2007|2010“ ; 330.341.1(497.16) [tmx] [bow] |
Nikola Milović
Institution: Faculty of Economics, Podgorica | Nikola Milović
Institucija: Ekonomski fakultet Podgorica |
Abstract
Since 2005, the World Economic Forum (WEF) has based its research on competitiveness in the Global
Competitiveness Index (GCI), a comprehensive index that measures the microeconomic and macroeconomic
foundations of national competitiveness. According to the WEF, competitiveness is defined as a set of institutions,
policies and factors that determine the level of productivity of a country Ê1Ë. The level of productivity, in contrast,
establishes a sustainable level of prosperity that can be created by the economy. In other words, more competitive
economies tend to be able to produce higher levels of income for their citizens. The level of productivity also
determines the rate of return on investments into the economy. The rates of return on investments and the return
on investments themselves are very complementary to achieving economic growth in the economy; more
competitive economies are those whose growth is faster in the medium term compared to the long term. The concept
of competitiveness thus involves both static and dynamic components. Although the productivity of the
country clearly determines its ability to maintain its income levels, it is also one of the central determinants of returns
on investments, which is one of the key factors when explaining the growth potential of the economy. The
following paper presents a methodology of measuring competitiveness by the GCI index, statistical data related
to the world economy, European Union countries, the countries that are in the process of accession to the EU,
global advantages and disadvantages of the position of Montenegro and the countries of the region. | Apstrakt
Since 2005, the World Economic Forum (WEF) has based its research on competitiveness in the Global
Competitiveness Index (GCI), a comprehensive index that measures the microeconomic and macroeconomic
foundations of national competitiveness. According to the WEF, competitiveness is defined as a set of institutions,
policies and factors that determine the level of productivity of a country Ê1Ë. The level of productivity, in contrast,
establishes a sustainable level of prosperity that can be created by the economy. In other words, more competitive
economies tend to be able to produce higher levels of income for their citizens. The level of productivity also
determines the rate of return on investments into the economy. The rates of return on investments and the return
on investments themselves are very complementary to achieving economic growth in the economy; more
competitive economies are those whose growth is faster in the medium term compared to the long term. The concept
of competitiveness thus involves both static and dynamic components. Although the productivity of the
country clearly determines its ability to maintain its income levels, it is also one of the central determinants of returns
on investments, which is one of the key factors when explaining the growth potential of the economy. The
following paper presents a methodology of measuring competitiveness by the GCI index, statistical data related
to the world economy, European Union countries, the countries that are in the process of accession to the EU,
global advantages and disadvantages of the position of Montenegro and the countries of the region. |
| Pages: 47-53 | Strane: 47-53 |