Competitiveness and convergence in G7 and emerging markets

Abstract

Purpose – The purpose of this paper is to explore the competitiveness and convergence of the G7 and big emerging markets (BEM) nations using various economic, demographic, trade, investment, and freedom and governance criteria.Design/methodology/approach – The two groups of nations, G7 and BEM, are compared on the basis of various longitudinal and cross‐sectional variables. The longitudinal variables are GDP and real GDP growth, per capita GDP, international trade, foreign direct investment, index of ageing, and life expectancy at birth. Cross‐sectional competitive indices are Global competitiveness index, index of economic freedom, Democracy index, Human development index, Gini index, Government effectiveness, and Corruption perception index.Findings – The findings show that BEM is growing faster than G7 in most economic indicators including GDP, trade, and investment. The growth results in some form of convergence. The freedom and governance infrastructure of the BEM is relatively weak to support their ...