Analysis, Assessment and Pathology of Global Competitiveness Index

The aim of this paper is to analyze and assess the Global Competitiveness Index (GCI). In order to achieve this objective، first of all some theoretical and empirical problems of GCI are presented. Then tries to examine hypothesis and explain methodology and statistics and findings of the study. World Economic Forum (WEF) has annually published GCI report since 1979. This index covers many factors enabling national economies to achieve sustainable economic growth and long term prosperity. These factors include both microeconomic and macroeconomic foundations of national competitiveness which affect the level of productivity of a country. The GCI includes a weighted average of many different components، each measuring a different aspect of competitiveness. These components are grouped into 12 pillars of economic competitiveness. A well known economic theory proposed by Porter (1990) is employed to indentify the stages of development in the countries included in the sample. The first stage is factor-driven where countries compete based on their factor endowment. Countries will move into the second stage called efficiency-driven when they begin to develop more efficient production process and increase their product quality. Finally، as countries will move into innovation-driven stage، businesses are able to compete with new and unique products. The GCI 2012-2013 report shows that Iran is ranked 66 among 144 economies. This results show that Iran has dropped 4 places this year.