Abstract

This paper analysis the impact, direct and indirect impacts, of Islamicity on Global competitiveness, with Human development as moderator variable. Cross-section data on Islamicity index, Human development index and Global competitiveness index were collected from 123 countries and employed in a path analysis model. The results show that Islamicity had a positive and significant direct impact on global competitiveness. Islamicity had also positive and significant direct impact on human development. These direct impacts were statistically significant. Furthermore, human development had a positive and significant direct impact on the global competitiveness. Finally, Islamicity had a positive and significant indirect impact on the global competitiveness, through human development. It is suggested that Islamic teaching be implemented in daily life in order to maintain competitiveness globally.

Highlights

  • Islamicity on Global competitiveness, with Human development as moderator variable

  • Cross-section data on Islamicity index, Human development index and Global competitiveness index were collected from 123 countries and employed in a path analysis model

  • The Global Competitiveness Report of the World Economic Forum (2009-2010) defines competitiveness as "the set of institutions, policies, and factors that determine the level of productivity of a country"

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Summary

Introduction

Islamicity on Global competitiveness, with Human development as moderator variable. Cross-section data on Islamicity index, Human development index and Global competitiveness index were collected from 123 countries and employed in a path analysis model. Show that Islamicity had a positive and significant direct impact on global competitiveness. Islamicity had positive and significant direct impact on human development. Human development had a positive and significant direct impact on the global competitiveness. Islamicity had a positive and significant indirect impact on the global competitiveness, through human development. The International Economic Development Council (IEDC) in Washington, D.C.,has published the "Innovation Agenda: A Policy Statement on American Competitiveness". International comparisons of national competitiveness are conducted by the World Economic Forum, in its Global Competitiveness Report, and the Institute for Management Development (2003), in its World Competitiveness Yearbook (2003)

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