Understanding the foundations of global competitive advantage of nations

Abstract

Purpose

This paper focuses on the issue of global competitive advantage of nations, based on the dimensions analyzed by the World Economic Forum in assessing the economic competitiveness of a large sample of countries. From the different stages of development of the countries, this study aims to help us to recognize what variables better explain the global competitive advantage of economies.

Design/methodology/approach

Following quantitative analysis, results based on PLS show what dimensions within each economic development stage best explain the global competitive advantage of economies.

Findings

Beyond the institutions, infrastructure and regulation of the markets, higher education and training, the technological readiness, the business sophistication and innovation contribute greatly to explain the competitive advantage of economies.

Originality/value

Understanding the drivers of global competitive advantage of nations, this study may help academics to conduct new studies, as well as politicians to define intervention priorities.

Citation

Farinha, L., Nunes, S., Ferreira, J.J. and Fernandes, A. (2018), "Understanding the foundations of global competitive advantage of nations", Competitiveness Review, Vol. 28 No. 5, pp. 503-517. https://doi.org/10.1108/CR-10-2016-0063