Deep Ranking Analysis by Power Eigenvectors (DRAPE): Linking Sustainability and National Competitiveness

Abstract

There has been limited research on integrating sustainability factors into indicators of global competitiveness among nations. Extant measures of macroeconomic competitiveness focus inadequate attention on the relative importance and interdependences among economic, social, and environmental factors and often their aggregation method. The primary objectives of this study were to explore the interrelations of economic competitiveness and sustainability while integrating the economic and sustainability performance indicators of the Global Competitiveness Index (GCI) and the Global Sustainable Competitiveness Index (GSCI) to create more accurate rankings of countries in both dimensions. Deep Ranking Analysis by Power Eigenvectors (DRAPE) with Variable Clustering (VARCLUS) was applied to associate multiple and conflicting economic and sustainable competitiveness criteria. Consequently, economic competitiveness and mainly institutional environment and innovation capabilities tend to couple with a higher degree of sustainability. However, improving and refining sustainable competitiveness may be vulnerable to environmental issues and resource scarcity, but further socio-economic dimensions must also be considered. The outcomes demonstrate the leadership of the Scandinavian countries and Switzerland, which are all competitive as well as sustainable. This research may extend and inspire further studies and government interventions that adopt more comprehensive approaches to assessing global competitiveness.