The Impact of Competitiveness on Economic Growth;By Endogenous Growth Model

The economic growth rate is an important issue which concerns most of the economic intellectuals, because the economic Growth rate is one of the most important factors which have effect on the human Social welfare. But in spite of the importance of economic growth rate, determining different factors affecting on growth of a country still are mysterious and to some extent controversial. trade strategy, among the others, is one of the most important explanatory variables of growth. One the other hand, the effect of trade on growth is considered as one of the most important topics in growth and trade literature. From an economic point of view, The most important opinions of advantage is documented and during the evolution of advantage-based theories, The Theory of Competitive advantage and competitiveness, had introduced, Since the and of The Year 1990. We decided to examine the impact of competitiveness on economic growth. To provide a composite measure of competitiveness, caring the sources of competitiveness, we focused on the effectiveness of above mentioned measures on different elements of production function. So, we introduced three indices of labor force, capital and technology competitiveness, then we calculated these measures for 57 countries during the period of 1995-2003 and countries in to four groups based on income levels according to the world bank classification. Finally, the estimation of model would have done (by considering above measures). Three functional forms of the production function were suggested regarding the different forms of technology (labor-augmenting technological progress, capital- augmenting technological progress and Hicks-Neutral form). Then using a panel data regression model, the strong and positive relationship, had been confirmed.