Global Competitiveness Index and its Determinants: A Comparative Study

Abstract

This study seeks to compare the impact of the Sub-indices of the Global competitiveness index on the global competitiveness index of India, Pakistan and China during the period of 2008 to 2017. The study uses multiple regression equations to examine the impact of sub-indices of GCI on the GCI of India, Pakistan and China. It uses comparative analysis to find out the result. The global competitiveness index ranks a country based on its competitiveness capacity. This index is released every year by the World Economic Forum to measure competitiveness among countries. The study first tests the normality of the data by using the Jacque-Bera test. The stationarity of the data is checked by using the unit root test. The study examines multicollinearity, autocorrelation, and heteroscedasticity in the regression model. The study uses a residuals test to check the validity of the regression model. The study applies BDS (Brock-Dechert-Scheinkman) independence test to examine the non-linear pattern of the residuals distribution. It is found that series are not independently identically distributed. And it is observed that variables are stationary at the first difference, and there is a significant impact of sub-indices of GCI ON the GCI of India, Pakistan and China.

Keywords: GCI, Sub-Indices, Competitiveness, Multiple Regression

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