BEYOND COMPETITIVENESS: THE GOVERNANCE DIMENSION OF ECONOMIC GROWTH

Abstract

This paper explores the theoretical foundations of economic competitiveness as a multidimensional concept, and the various definitions and approaches proposed by international organizations and scholars, highlighting competitiveness as the outcome of multiple interrelated factors: trade, investments, governance, innovation, human factor, etc. The research proposes two hypotheses: (1) The level of competitiveness has the capacity to influence the overall economy and national welfare, measured by GDP per capita; (2) Government efficiency is a key determinant of competitiveness. To test these assumptions, the study employs empirical methods such as econometrics, statistical analysis, case studies and, of course – exploratory and explanatory research.   Simple regression analyses, correlations and comparative evaluations are conducted, based on data for Singapore, Malaysia and Venezuela (as countries with a different economic development and competitiveness level) and the top 20 most competitive economies of the world, focusing on the relationship between the Global Competitiveness Index (GCI), GDP per capita and Government Efficiency.  Overall, the findings indicate that competitiveness has a direct and measurable impact on national welfare, expressed through GDP per capita, yet this effect is evident mainly among developed countries. This outcome supports the view that effective and stable governance remains the cornerstone for fostering and sustaining long-term competitiveness.