The evaluation of competitive position of EU-28 economies with using global multi-criteria indices
Research background: Under the current conditions of increasing competitiveness and interdependence, national economies are more influenced by the global business environment and its development. Constantly changing economic, social, political aspects, and many other factors, cause the differences in the global competitiveness of economies, so the economies are forced to analyze their competitive level more complexly. Despite that, there is a lack of research studies analyzing the international competitiveness of EU-28 economies from the point of view various multi-criteria indices.
Purpose of the article: The paper investigates the relations between the Global Competitiveness Index (GCI) and other selected multi-criteria indices, namely the Global Innovation Index (GII), the Doing Business Index (DBI), the Economic Freedom Index (EFI) and the Corruption Perceptions Index (CPI) in the case of EU–28 economies.
Methods: In order to investigate the relations between the global competitiveness and selected multi-criteria indices affecting the EU–28 economies, the multiple linear regression analyses were applied. The multiple regression model was quantified for every single year, as well as, the regression model using the average score of all analyzed indices. The secondary data concerning the scores of individual indices were collected based on annually published online reports over the period of 2014–2018.
Findings & Value added: The research confirmed that there is a statistically significant dependence between the global competitiveness, corruption and the level of innovation potential within the EU–28 economies. Besides, we identified the worst results in the context of competitiveness evaluation especially in the area of corruption and innovation activities. In this regard, the issue of insufficient innovation development and inappropriate corruption perception is considered to be key determinants influencing the assessment of the global competitiveness of the EU–28 member states. In our opinion, to improve the competitiveness of these countries, targeted activities should be implemented in the frame of national competitive strategies, programs, and policies.
Abrham, J., & Herget, J. (2013). Approaches to the assessment of the factors of competitiveness and long-term growth. Politické Vedy, 16(2).
Akin, C. S., Aytun, C., & Aktakas, B. G. (2014). The impact of economic freedom upon economic growth: An application on different income groups. Asian Economic and Financial Review, 4(8).
Alexy, M., Kacer, M., & Rehak, S. (2018). Creative capacity of European countries. Hungarian Geographical Bulletin, 67(3). doi: 10.15201/hungeobull. 67.3.1.
Ani, T. G. (2015). Effect of ease of doing business to economic growth among selected countries in Asia. Asia Pacific Journal of Multidisciplinary Research, 3(5).
Bacik, R., Kmeco, L., Fedorko, R., Olearova, M., & Rigelsky, M. (2019). Marketing instrument of improving hotel management service: Evidence of Visegrad group countries. Marketing and Management of Innovations, 1. doi: 10.21272 /mmi.2019.1-17.
Balcerzak, A. P., & Pietrzak, M. B. (2016). Quality of institutions for knowledge-based economy within new institutional economics framework. multiple criteria decision analysis for European countries in the years 2000–2013. Economics & Sociology, 9(4). doi: 10.14254/2071-789X.2016/9-4/4.
Belas, J., Misankova, M., Schönfeld, J., & Gavurova, B. (2017). Credit risk management: Financial safety and sustainability aspects. Journal of Security and Sustainability Issues, 7(1). doi: 10.9770/jssi.2017.7.1(7).
Bucher, S. (2018). The Global Competitiveness Index as an indicator of sustainable development. Herald of the Russian Academy of Sciences, 88(1). doi: 10.1134 /S1019331618010082.
Di Fatta, D., Musotto, R., & Vesperi, W. (2018). Government performance, ethics and corruption in the Global Competitiveness Index. In Governing Business Systems: Theories and Challenges for Systems Thinking in Practice: Springer Proceedings in Business and Economics. Springer International Publishing. doi: 10.1007/978-3-319-66036-3_8.
Dobrovic, J., Gallo, P., Mihalcova, B., Stofova, L., & Szaryszova, P. (2018). Competitiveness measurement in terms of the Europe 2020 strategy. Journal of Competitiveness, 10(4). doi: 10.7441/joc.2018.04.02.
Dobrovic, J., Kmeco, Ľ., Gallo, P., & Gallo, P. Jr. (2019). Implications of the Model EFQM as a strategic management tool in practice: a case of Slovak tourism sector. Journal of Tourism and Services, 10(18). doi: 10.29036/jots.v10 i18.91.
Dudas, T., & Cibula, A. (2018). The changing methodology of the Global Competitiveness Index and its impact on Slovakia. Ad Alta-Journal of Interdisciplinary Research, 8(2).
Dutta, S., Lanvin, B., & Wunsch-Vincent, S. (2018). The Global Innovation Index 2018. Geneva: Cornell University, INSEAD, the World Intellectual Property Organization.
Ficeac, B. (2013). The "culture of corruption" in the post-communist space. economic indicators, transition indices and cultural dimensions vs. the perception of corruption. Revista De Cercetare Si Interventie Sociala, 43.
Gallo, P., & Tomčíková, Ľ. (2019). The analytical view of the methods of strategy creation and involvement of managers of individual control levels in the production of strategies in strategic management in manufacturing companies in the conditions of the Slovak Republic. Quality - Access to Success, 20(170).
Hossain, M. T., Hassan, Z., Shafiq, S., & Basit, A. (2018). Ease of doing business and its impact on inward FDI. Indonesian Journal of Management and Business Economics, 1(1).
Chapcakova, A., Heckova, J., Gira, D., Valentiny, T. & Zbihlejova, L. (2019). Quantification of the selected macroeconomic impacts on the EEA countries competitiveness assessment. Montenegrin Journal of Economics, 15(1). doi: 10.14254/1800-5845/2019.15-1.12.
Ivanova, E., Kordos, M., & Habanik, J. (2015). The competitiveness of V-4 countries within the European Union. Actual Problems in Economics, 167(5).
Jankowska, B., Matysek-Jedrych, A., & Mroczek-Dabrowska, K. (2017). Efficiency of national innovation systems – Poland and Bulgaria in the context of the Global Innovation Index. Comparative Economic Research-Central and Eastern Europe, 20(3). doi: 10.1515/cer-2017-0021.
Kharlamova, G., & Vertelieva, O. (2013). The international competitiveness of countries: Economic-mathematical approach. Economics & Sociology: Recent Issues in Economic Development, 6(2). doi: 10.14254/2071-789X.2013/6-2/4.
Kljucnikov, A., Belas, J. & Smrcka, L. (2016). The role of risk-taking and competitive aggressiveness in management of SMEs. Polish Journal of Management Studies, 14(1). doi: 10.17512/pjms.2016.14.1.12.
Komarova, V., Lonska, J., Lavrienenko, O., & Menshikov, V. (2018). Influence of Existing social and economic interactions on sustainable territory development: The case of Iceland. Entrepreneurship and Sustainability Issues, 5(3). doi: 10.9770/jesi.2018.5.3(1).
Kot, S. (2018). Sustainable supply chain management in small and medium enterprises. Sustainability, 10(4). doi: 10.3390/su10041143.
Lietuvniké, M. M., Vasilis Vasiliauskas, A., Vasiliene-Vasiliauskiene, V., & Sabaityte, J. (2018). Peculiarities of illegal immigrant's intrusions into road freight transport units in the France - UK corridor. Entrepreneurship and Sustainability Issues, 5(3). doi: 10.9770/jesi.2018.5.3(16).
Miller, T., Kim, A. B., Roberts, J. M., & Tyrrell, P.. (2018). 2018 Index of Economic Freedom Report. The Heritage Foundation.
Mishchuk, H., Samoliuk, N., Bilan, Y., & Streimikiene, D. (2018). Income inequality and its consequences within the framework of social justice. Problemy Ekorozwoju – Problems of Sustainable Development, 13(2).
Morkūnas, M., Volkov, A., Bilan, Y., & Raišienė, A. G. (2018). The role of government in forming agricultural policy: economic resilience measuring index exploited. Administratiesi Management Public, (31). doi: 10.24818/amp/2018 .31-08.
Mushtaq, S., & Ali Khan, R. E. (2018). Economic freedom and sustainable development: A panel data analysis. Pakistan Journal of Social Issues, Special Issue (June).
Ngoc, B. H., Hai, D. B., & Chinh, T. H. (2018). Assessment of the should be effects of Corruption Perception Index on foreign direct investment in ASEAN countries by spatial regression method. Econometrics for Financial Applications, 760. doi: 10.1007/978-3-319-73150-6_33.
Oveshnikova, L., Lebedinskaya, O., Timofeev, A., Mikheykina, L., Sibirskaya, E., & Lula, P. (2019). Studying the sector of the Russian high-tech innovations on the basis of the Global Innovation Index INSEAD. In E. G. Popkova & V. N. Ostrovskaya (Eds.) Perspectives on the use of new information and communication technology (ICT) in the modern economy. Springer. doi: 10.1007/978-3-319-90835-9_11.
Petrarca, F., & Terzi, S. (2018). The Global Competitiveness Index: an alternative measure with endogenously derived weights. Quality & Quantity, 52(5). doi: 10.1007/s11135-017-0655-8.
Roy, S. (2018). Impact of competitiveness drivers on Global Competitiveness Index. Pacific Business Review International, 11(2).
Rubio, D. F. (2018). Corruption Perceptions Index 2018. Retrieved from https://www.transparency.org/cpi2018.
Rusu, V. D., & Dornean, A. (2019). The quality of entrepreneurial activity and economic competitiveness in European Union countries: a panel data approach. Administrative Sciences, 9(2). doi: 10.3390/admsci9020035.
Rusu, V. D., & Roman, A. (2018). An empirical analysis of factors affecting competitiveness of CEE countries. Economic Research-Ekonomska Istrazivanja, 31(1). doi: 10.1080/1331677X.2018.1480969.
Sala-i-Martín, X., & Schwab, K. (2017). The Global Competitiveness Report 2017-2018. World Economic Forum.
Stefko, R., Vasanicova, P., Litavcova, E., & Jencova, S. (2018). Tourism intensity in the NUTS III regions of Slovakia. Journal of Tourism and Services, 9(16). doi: 10.29036/jots.v9i16.43.
Tan, K. G., Gopalan, S., & Nguyen, W. (2018). Measuring ease of doing business in India's sub-national economies: A novel index. South Asian Journal of Business Studies, 7(3). doi: 10.1108/SAJBS-02-2018-0010.
Vevere, V., Zvirgzdina, R., & Linina I. (2017). Indexes as business environment characterizing instruments. European Integration Studies, 11. doi: 10.5755/j01. eis.0.11.18645.
Vlasova, V., Kuznetsova, T., & Roud, V. (2017). Drivers and limitations of Russia's development based on the evidence provided by the Global Innovation Index. Voprosy Ekonomiki, 8. doi: 10.32609/0042-8736-2017-8-24-41.
World Bank Group (2019). Doing Business Report 2019. World Bank.
Yevdokimov, Y., Melnyk, L., Lyulyov, O., Panchenko, O., & Kubatko, V. (2018). Economic freedom and democracy: determinant factors in increasing macroeconomic stability. Business Perspectives – Problems and Perspectives in Management, 16(2). doi: 10.21511/ppm.16(2).2018.26.
Zouaoui, A., Al Qudah, A., & Arab, M. B. (2017). World corruption perception index analysis. Research Journal of Finance and Accounting, 8(24).
This work is licensed under a Creative Commons Attribution 4.0 International License.