A Growth Theory and Competitiveness Gains Measure Linkage

González, Germán (2006): A Growth Theory and Competitiveness Gains Measure Linkage. Unpublished.

Abstract

This work provides a macroeconomic approach and a sound conceptual foundation for the notion of "competitiveness gains", so prone to multiple interpretations, and to make it fit for empirical analyses. Instead of "competitiveness" is "competitiveness gains" the relevant concept, defined as a situation where the economy experiences a higher growth rate of TFP than its competitors. We present a theoretical model of competitiveness that provides a rationale for the variations of competitiveness,associated to the behavior of related variables; then we carry out an empirical exercise which shows that our formalization supports a measurable approximation to competitiveness gains.

• Item Type: MPRA Paper
• Language: English
• Keywords: competitiveness; competitiveness gains measure; total factor productivity; trade and growth
• Subjects: O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models

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