Global Competitiveness Index Research Articles

Linking sustainability and the Fourth Industrial Revolution: a monitoring framework accounting for technological development

BackgroundIn this article, the concept of the Fourth Industrial Revolution and related implications for the measurement of sustainable development are analyzed. Technological innovations can play an important role in countering errant developments of the past and can support the transformation process towards a green economy in pursuit of the Sustainable Development Goals. On the other hand, they pose challenges to the social control of technology and represent a methodical quandary known as the Collingridge dilemma. The core statement of the dilemma is that the implications of new technologies will only be fully visible once they are embedded in socio-economic-ecological systems when the possibilities to control diminish. The main objective of this study is thus to develop a monitoring framework enabling the ex ante assessment of related technological shifts and their implications for sustainable development.ResultsTo approach the resulting difficulties for sustainability monitoring, digitization indicators should be accounted for in the German Sustainable Development Strategy. An enhanced strategy complemented by related Global Competitiveness Index 4.0 indicators, for which the Word Economic Forum assumes a modest link between competitiveness and inequality, illustrates the feasibility of linking research regarding the Fourth Industrial Revolution and sustainable development to measure its social and environmental consequences. The newly developed Sustainable Digital Socio-Economic-Ecological Indicator System categorizes the sustainability indicators into one index covering all Sustainable Development Goals along with four sub-indices emphasizing crucial aspects relevant to navigating a successful transformation. This novel and innovative approach is illustrated using the examples of Germany.ConclusionsThe Fourth Industrial Revolution is fundamentally driven by introducing renewable energy resources as a new energy regime. However, the effects extend beyond energy and necessitate comprehensive measurement frameworks for assessing sustainable development implications. This work contributes by analyzing the related impact on sustainable development and providing decision-makers with new insights for early recognition. Preliminary results for Germany expose a discrepancy between the status quo and the desired pathway, indicating emerging effects of the Fourth Industrial Revolution on inequality, employment, and education. While none of the sectors are sustainable, the sub-index analysis highlights distinct disparities among economic, social, and ecological sectors.

ENTREPRENEURIAL ECOSYSTEM OF INTERNATIONAL BUSINESS IN THE TRANSITION ECONOMY: THE CASE OF SOUTHERN REGION OF UKRAINE

This paper aims to analyse and evaluate the state of the entrepreneurial ecosystem of international business in the transition economy based on the evidence of the southern region of Ukraine. The tasks of the study are (i) to identify the presence of components of the international business ecosystem and their quality depending on the level of development of the transition economy (policy, markets, finance, human capital, culture, support); (ii) to assess the current state of the components of the international business ecosystem; (iii) to identify constraining factors for the functioning of the regional entrepreneurial ecosystem for their further consideration when adjusting the trajectory of the development of the transition economy. The model of Isenberg was used to observe the structure of the ecosystem. The international ratings (KOF Index of Globalization, Global Competitiveness Index, Doing Business, etc.), the data of the State Statistics Service of Ukraine, national laws, etc. were used for the qualitative measurement of the ecosystem performance. An online survey was conducted to assess the current state of the ecosystem and to identify the restraining factors of its functioning. The research results demonstrate that all domains of an international business ecosystem are in the process of formation. 80% of respondents rated domains’ performance at three points on a 5-point scale, indicating poor functioning the ecosystem. The respondents of the survey represent several industries but mostly agro-industrial complex. The restraining factors are ineffective government policy; business-unfriendly legislation; limited access to the infrastructure; insecurity of property rights; inefficient business support systems, etc. The research results show that almost all components of the ecosystem are less efficient in Ukraine than in Europe, except for the entrepreneurs’ intentions of networking and collaboration development. The paper proposed original research on the institutional context of the ecosystem in the transition economy. The study is built on the idea of the specific regional peculiarities of entrepreneurial ecosystems and the impact of transformational processes of the economy of the country. The results of the study can be used as a basis for a scientific focus on the policy of improving the entrepreneurial ecosystem. The article empirically expands the knowledge of entrepreneurial ecosystems and shows the potential and benefits of a complete integrated ecosystem for overall regional development.

THE IMPACT OF INTELLECTUAL MIGRATION ON THE COUNTRY`S INNOVATIVE DEVELOPMENT

In the scientific article, the author investigated the approaches of domestic and foreign scientists to the definition of "intellectual migration" and its impact on the innovative development of the country. The author analysed the dynamics and structure of the number of issued first employment permits for migrants from Ukraine in the countries of the European Union. The share of first permits for intellectual migrants from Ukraine (EU Blue Card, highly qualified workers and researchers) on average for 27 EU countries was 0.25% in 2021. The structural analysis in the regional section made it possible to assert the priority of employment of highly educated Ukrainians in 2021 in such EU countries as Cyprus, the Netherlands, Austria, and Luxembourg. In order to analyse trends in intellectual migration in Ukraine, the author used the indicators "Brain gain" and "Brain retention" in The Global Talent Competitiveness Index, "Human Flight and Brain Drain" in The Fragile States Index. The value of the indicators and their dynamic analysis made it possible to position Ukraine as a donor country of intellectual migrants for other countries. The author investigated the relationship between indicators of intellectual migration and innovative development of the country, the basic indicator of which is The Global Innovation Index. The obtained values of pairwise correlation coefficients demonstrate a close relationship between intellectual migration and innovative development of the country, as the calculated values exceed |0.7|. The obtained results proved the negative effect of the departure of highly qualified persons abroad on the innovative capacity of the native country (-0.838) and the positive effect of the arrival of intellectual migrants to the country of destination (0.731). In order to detail the relationship, the author developed an economic-mathematical model of the form y=-4.5662х+60.153, which proves that with the increase in the value of the indicator "Human Flight and Brain Drain" in The Global Talent Competitiveness Index, the value of the Global Innovation Index decreases.

ІДЕНТИФІКАЦІЯ ДЕТЕРМІНАНТІВ ЕФЕКТИВНОСТІ ДИФУЗІЇ ІННОВАЦІЙ СОЦІАЛЬНО-ЕКОНОМІЧНИХ СИСТЕМ

In the conditions of global economic transformation, the development of socio-economic systems is possible only through the implementation of innovative national, regional and corporate strategies. The evolution of technology and science is changing the socio-economic environment, innovations are becoming a key factor in economic growth and competitiveness of countries and organizations. But, despite the great potential of innovations, their effective implementation does not always take place. Under such conditions, the topic of this study becomes especially relevant. The purpose of the article is to identify the determinants of the effective diffusion of innovations in socio-economic systems and its evaluation. The object of the research the process of effective diffusion of innovations in socio-economic systems. Methods used in the study: methods of scientific knowledge, namely analysis and synthesis, induction, measurement, observation, formalization, logical-analytical techniques. The main hypothesis of the study is the assumption that the effective diffusion of innovations in socio-economic systems depends on a set of factors, the management of which allows identifying problem areas and improving the mechanisms for solving them. Presenting main material. The study, based on the theory of innovation diffusion, identified the key determinants of the efficiency infiltration of innovation in socio-economic systems. It is appropriate to include: technical features of innovations, cultural and ethical differences between different groups of consumers, availability of financial resources for the implementation of innovations, effectiveness of communication mechanisms and interaction networks between participants of the socio-economic system, degree of involvement and support of participants, level of education and information literacy of the population, cultural, social and political aspects, etc. The world experience in methods of assessing the effectiveness of national innovative activity, on the basis of which international indexes and ratings are determined, including Global Innovation Index, European Innovation Development Scoreboard, Bloomberg Innovation Index, Global Competitiveness Index, etc., is analyzed. It has found that international indexes and ratings have a number of shortcomings that do not allow to correctly assess the effectiveness of the implementation of the results of innovative activities and to identify the main problematic aspects that prevent the diffusion of innovations in socio-economic systems. The originality and practical significance of the research lies in the fact that the identified determinants of the efficiency of innovation diffusion of socio-economic systems can be used to identify problematic aspects and increase the level of innovative development of countries. Conclusions and prospects for further research: the determinants of the effectiveness of the diffusion of innovations in socio-economic systems are determined. The study of their interaction and their management can increase the effectiveness of the diffusion of innovations at the macroeconomic level. It has been established that the indicator systems used to evaluate the effectiveness of innovative activities of socio-economic systems at the macroeconomic level characterize various aspects of national innovative development, reflecting not only the results of innovative activities, but also available innovative resources. However, there is still no clear idea of the composition of the system of indicators for evaluating the effectiveness of the diffusion of innovations and their number. In order to eliminate subjectivity in further research, it is advisable to use mathematical methods of forming such system of evaluation indicators.

The Conceptual Link between Country Competitiveness and Corporate ESG Performance

Abstract The alignment between environmental, social and governance (ESG) performance and country’s competitiveness helps academics and practitioners in observing corporate contributions to sustainable growth, leveraging corporate environments focused on ESG aspects that have a macroeconomic impact, but a limited number of studies analyzes this link. Thus, the aim of this study is to propose a case study for which an original mapping is proposed. Data were collected from Refinitiv Eikon, for two companies (in the oil and gas and financial services sectors), located in Romania, for the financial year 2021, and from the Global Competitiveness Report published by the World Economic Forum in 2019, as it is the latest full report available. Interpretative analysis was applied to the proposed mapping of sustainability practices reflected through ESG indicators, in relation to various relevant components of six pillars from the global competitiveness index. Our qualitative research included the computation of a total score based on the impact of ESG performance in pursuing the country’s competitiveness. Our results show that in Romania, the largest oil and gas company disclosed quantitative and qualitative information on ESG indicators and obtained a score (25) which is equal to the one obtained by the analyzed bank, the largest in Romania. The highest contribution to reaching the country’s competitiveness is related to the social pillar, especially the workforce dimension, for both organizations. Thus, corporate ESG performance is mapped to six pillars out of 12 regarding country competitiveness, for entities activating in either financial or non-financial industries, with different weight allocated to each of the three ESG pillars. This research is important for various stakeholders, such as governments, business, and civil society, depending on the role within the organization, either direct or indirect.

Innovative Potential of the Oil and Gas Industry of Kazakhstan

The article is devoted to analysing the innovative potential of enterprises in Kazakhstan's oil and gas sector and developing ways for its effective implementation. In the current economic conditions, the issue of increasing efficiency, modernization, innovative activity and strategic partnership in the oil and gas sector is becoming especially relevant. This is since the raw material orientation of the industry poses a threat to the economic security of the country, which means that increasing the innovative potential of such an important sector for the country's GDP is an urgent problem. The authors of the article analyzed the relationship between the innovative potential of the oil and gas sector and the internal costs of innovation, and the volume of innovative products. An analysis was carried out on benchmark indicators of the country's global competitiveness index, as well as an analysis of measures to introduce innovation in Kazakhstan's oil and gas industry. The most significant technological innovations in the main segments of the oil and gas complex are given. On the basis of the research, proposals were made to increase the innovative potential of the enterprises of the oil and gas industry in Kazakhstan. The most critical strategic prospects for developing Kazakhstan's oil and gas sector are substantiated based on two directions: an increase in internal costs for innovation and an increase in the volume of innovative products.

Tourism and Travel Competitiveness Index: From Theoretical Definition to Practical Analysis in Romania

The competitiveness of tourist destinations presents, from the perspective of sustainability, certain benefits in terms of local and regional development: the involvement of local authorities (city, local and county councils, population) in the conservation of tourist resources, the involvement of tourism agencies in the promotion of rural areas, the creation of brands for each tourist destination/region and the protection of cultural-historical heritage from degradation. Competitiveness, as a segment of sustainability, integrated in Romanian local communities, is necessary in order to offer tourists an unmistakable experience of the natural and anthropogenic tourism potential of destinations, to raise the population’s awareness, to preserve traditions, customs and habits and to practice tourism based on sustainability, awareness and without any pollution of terrestrial and aquatic ecosystems. This study aims to highlight the image of Romania’s tourism competitiveness, which could support the tourism economy in the long term, by analysing the Global Tourism and Travel Competitiveness Index (TTCI) in Romania, compared to two other neighbouring countries, Bulgaria and Hungary. The Global Competitiveness Index provides an integrative picture of the main sub-indices that interfere in the formation of a country’s competitiveness, with insights on the 12 pillars that intervene in the sustainable development of tourist destinations worldwide.

Lifelong Learning as a Factor in the Country’s Competitiveness and Innovative Potential within the Framework of Sustainable Development

The aim of this paper is to examine the interdependence between adult education and the competitiveness and innovative potential of the economy in the conditions of sustainable development. To examine the mentioned, we used a sample of data that includes European countries. The Global Competitiveness Index and its components were taken for research as a numerical display of the country’s competitiveness. For indicators of lifelong learning, the share of persons aged 18–64 years involved in education was taken. The paper applies correlation and regression Pearson analysis of comparative data sections. The non-parametric Kruskal–Wallis test and the Wilcoxon–Mann–Whitney test were applied to verify the data, and Vosviewer software was used for bibliometric and graphical analysis. The research findings indicate a strong correlation between lifelong education and the competitiveness and innovative potential of the economy.

Nascent entrepreneurship in university students: the role of the context

ABSTRACT This paper offers evidence that the context might influence a university student’s start-up process differently, depending on the category of activities and regions. Specifically, it explores the influence of university and national contexts while considering the different categories of the start-up process. Our approach divides the start-up process into three categories (Business planning, Interaction with the external environment, and Financing), four context definitions (University, Industry-technological, Institutional-policy, and Cultural), and three regions (European Union, Latin America, and Asian-African). We drew on the primary dataset of the Global University Entrepreneurial Spirit Students’ Survey (GUESSS) project that contains 7,628 nascent entrepreneurs from 21 countries, which we complemented with a set of international indexes from the World Economic Forum’s Global Competitiveness Index, the Global Entrepreneurship Index, and the Global Leadership and Organizational Behavior Effectiveness project. Generally speaking, the University context positively influences the start-up activities of students in Europe and Asia-Africa. The Industry and technological context and the Institutional and policy context play a relevant role (sometimes positive or negative) depending on the activity and region. Finally, the Cultural context presents mixed results too, and its influence varies (positively and negatively) depending on the kind of start-up activities and the region.

TRANSFORMATION OF THE EU COUNTRIES TO THE CIRCULAR ECONOMY MODEL

The article is devoted to the research of the transformation of the EU countries to the circular economy model.
 The concept of the circular economy is based on the approach of closing the production cycle, the extended duration of the exploitation phase of the product life cycle, and the processing of waste as resources subject to secondary use. The circular economy is based on a completely new paradigm, according to which it is necessary to analyze in detail existing economic systems and reorganize them in order to increase the level of efficiency in the use of natural resources, transform waste into resources and introduce a new approach to production and consumption.
 National circular economy monitoring indicators are adapted to strategies, policies and actions specific to a particular country. This is an obstacle to make comparison between countries. There is no single specific, universally accepted set of indicators or indicators that would measure progress in implementing a circular economy for countries.
 In order to assess the progress of the countries of the European Union, Great Britain, Norway and Ukraine regarding the implementation of the circular economy, an analysis of 13 indicators, grouped into 4 categories, was carried out, which formed the basis of the creation of the circular economy achievement indicator.
 A correlation analysis was conducted between the calculated circular economy indicator and the global competitiveness index and a positive correlation (0.665) was obtained. Germany, the United Kingdom, the Netherlands, and Austria were found to be leaders, while Ukraine, Bulgaria, Cyprus, Greece, and Malta were outsiders in the circular economy index and global competitiveness index. Germany, Great Britain, the Netherlands and Austria belong to the group of leaders regarding the implementation of the circular economy and the level of competitiveness.
 It was proved that integral indices, used in the decision-making process at all levels, can become an important tool for improving the management of the socio-economic development of Ukraine, including the regional context. Their use will help to increase the ratings, prestige and authority of the country on the world stage.

Oil and Non-Oil Determinants of Saudi Arabia’s International Competitiveness: Historical Analysis and Policy Simulations

To achieve sustainable economic growth, Saudi Vision 2030’s target is to improve Saudi Arabia’s ranking on the Global Competitiveness Index from 25 in 2015–2016 to within the top 10 by 2030. Saudi Arabia also aims to increase the share of non-oil exports in the non-oil GDP from 16% in 2016 to 50% by 2030. For policymakers to make informed decisions to achieve these goals, they need to understand the driving forces of Saudi Arabia’s competitiveness. To this end, we consider the real effective exchange rate (REER) as a measure of external price competitiveness, as it captures domestic and global price changes. We then examine the REER using a two-stage modeling framework. First, we estimate the REER equation, which allows us to assess the impacts of the determinants and evaluate currency misalignments as a competitiveness indicator. Second, we extend the KAPSARC Global Energy Macroeconometric Model (KGEMM) with the estimated equation, which provides a framework for simulating the competitiveness impacts of the theoretically formulated determinants and other variables relevant to policymakers. The framework also allows us to account for feedback loops. We conduct a policy scenario analysis to quantify the competitiveness effects of the Public Investment Fund’s (PIF) new strategy for 2021–2025. We derive the following policy insights. Authorities may wish to implement initiatives boosting future productivity and, thus, competitiveness, such as PIF investments. Policymakers should be regularly informed about currency misalignment. Government consumption and public investment projects should consider substituting imports with locally produced goods and services. Local content development would also help to diversify the Saudi economy. Finally, attracting more foreign investment and other assets from the rest of the world may lead to technological development and improvement in the economic, financial, and social infrastructure and business environment, all enhancing competitiveness.

Competitiveness based logistics performance index: An empirical analysis in Organisation for Economic Co-operation and Development countries

Logistics, beyond being a strategically important function for global supply chains, is a sector of considerable size in terms of the global economy. Thus, economy-wide logistics capabilities have a strategic impact at the national level, supporting countries to achieve a global competitive advantage. For this reason, the logistics performances of the countries not only show the success of using their existing logistics capabilities but also provide significant indications about their competitiveness at the global level. Due to this strategic impact, this study aims to deal with the logistics performances of OECD countries from the perspective of competitiveness and to determine the competitiveness-based logistics performance index (CB-LPI). For this purpose, data envelopment analysis has been applied with two different techniques. The input variables are the Global Competitiveness Index, and the output variables are the Logistic Performance Index. In this empirical study, 7 inputs (infrastructure, skills, product market, financial system, information and communication technology adoption, business dynamism, innovation capability) and 6 output variables (Customs, Infrastructure, International shipments, Logistics quality and competence, Tracking and tracing, Timeliness) have been used. This study is handled in a total of 5 periods. These periods are 2010, 2012, 2014, 2016 and 2018. As a result, it was determined that the competitive logistics performances of 8 countries (Australia, Germany, Italy, Mexico, Poland, Portugal, Spain, and Turkey) were at the level of full efficiency in each period in the application of both techniques. In addition, the CB-LPI covering all OECD countries has been established. Based on the scores obtained, country-based suggestions for countries have been developed.

The Impact of Information and Communication Technologies on Competitiveness: Evidence from MENA Countries

Information and communication technologies (ICTs) have recently emerged as a snowballing phenomenon that orient competitiveness strategies. They are vital and critical aspect for countries to not only improve their global competitiveness, but they also accomplish long-term growth. Latest developments in the Middle East and North African (MENA) countries render the region to be an appealing case study. This study aims at investigating the impact of ICTs in supporting the competitiveness in a sample of (13) countries in the MENA region during the period from 2010 to 2021. To accomplish this purpose, the study employs an econometric model that utilizes the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by implementing two models. The first model measured ICTs by an indicator which is networked readiness index (NRI). The second model measured ICTs by individuals using the internet (IUI) and the competitiveness in both models was measured by global competitiveness index (GCI). The findings indicated that networked readiness index (NRI) and individuals using the internet (IUI) have a significant and positive impact on the competitiveness in MENA countries. The study recommended that countries in the MENA region should inevitably accelerate the procedures of developing ICTs and support the ICT infrastructure in order to increase their competitiveness.

The impact of digital technologies on business competitiveness: a comparison between Latin America and Europe

PurposeThis study aims to examine how the adoption of digital technologies affects the business competitiveness of countries in Latin American and European countries.Design/methodology/approachThis study used a structural model based on factors representing the pillars of the Global Competitiveness Index: financial system, adoption of information and communication technologies (ICT), skills, labor market, product market, macroeconomic stability, business dynamism and gross domestic product (GDP) purchasing power parity (PPP) as a percentage of the total world value. The authors considered 17 Latin American and 28 European countries. The model was analyzed by partial least squares-structural equation modeling.FindingsICT adoption in Latin American countries is a strong predictor of business dynamism (66% of the variance), skills (81% of the variance), product market (75% of the variance), labor market (42% of the variance) and financial system (49% of the variance). Similarly, ICT adoption in European countries is a strong predictor of business dynamism (35.6% of the variance), skills (72.2% of the variance), product market (51.6% of the variance), labor market (81.7% of the variance, but with a negative path coefficient) and financial system (38% of the variance).Practical implicationsLatin American countries should create policies to build skills to increase ICT adoption, and improve business and labor market dynamism. A theoretical implication is that the authors propose two structural models based on the GCI that best explains competitiveness in Europe and Latin America.Originality/valueUsing GCI data, the authors present empirical evidence on the predictors of competitiveness across 17 Latin American and 28 European countries with a special focus on the adoption of digital technologies.

Global competitiveness Index vs. economic growth: Analysis of relationship in the Dominican Republic Context

Global competitiveness Index vs. economic growth: Analysis of relationship in the Dominican Republic Context

Competitiveness—the engine that boosts economic growth and revives the economy

Competitiveness is a concept that shows up in all aspects of human life, both at the micro level, in personal, social, and professional life, and at the macro level, linked to organizational and national competitiveness with long-term effects on global competitiveness. In this paper, we aim to address competitiveness in Romania in the current context, before and after the COVID-19 pandemic, highlighting its role in reviving the economy. While until the onset of the pandemic Romania’s competitiveness performance was growing, more recently, because of the global health crisis, it dropped a few places, according to the Global Competitiveness Index report. In order to have a clear picture of the degree of competitiveness in Romania, we have presented a series of statistical data for the most relevant macroeconomic indicators for our study for the 2017–2022 timeframe: the global competitiveness index, the minimum wage, labor productivity, the evolution of real labor productivity per employed person, the economic growth rate, the unemployment rate, the inflation rate, the European innovation index, gross domestic expenditure on research and development, export of goods and services as a share of GDP, etc. The methodology used involves the use of quantitative techniques, performing an econometric analysis, and correlating how the most important macroeconomic indicators can influence the degree of competitiveness at both the national and international level. For the post-pandemic timeframe, the analysis switches focus, just as the economic reality did, looking at energy costs and energy use as determinants of competitiveness. Since notions like circular economy and sustainable development correlate being energy-efficient with being competitive, however, at the same time, the high cost of investments necessary for individual businesses and countries to switch from polluting energies to clean energies impedes or at the very least heavily impacts their ability to compete with entities that don’t make that same switch, it becomes apparent that the energy market impacts competitiveness metrics. Competitiveness promotes valuable contributors and underpins performance at group and company level, and the effects from the micro level will propagate, with an emission effect, to the entire national economy with obvious implications at the international level, through real growth in macroeconomic indicators, increased labor productivity, increased economic performance (market share, export share, return on capital), raising living standards and economic and social wellbeing (life expectancy index, human development index, poverty rate), education (skills, knowledge, abilities, managerial and marketing skills, corporate culture), competitive potential (innovation, R&D, promotion), and in raising the Global Competitiveness Index by focusing on factors of production, efficiency, and innovation, etc.

RELATIONSHIP BETWEEN COMPETITION AND FINANCIAL DEVELOPMENT IN COUNTRIES: COMPARISON OF TURKEY-BRICS COUNTRIES

The purpose of this study is to examine the impact of competition on the financial development of countries. For this purpose, Turkey, and BRICS countries (Brazil, Russia, India, China, South Africa) were selected as sample countries for the study. A 17-year dataset was created with country data from 2005 to 2021 as the time period. The competitiveness factor is included in the analysis as an independent variable, using data from the Global Competitiveness Index published by the World Bank. The indices of the most traded stocks on the stock exchanges, which represent the financial performance of countries, were used as the dependent variable. The methods used in the study were the Westerlund cointegration test, Augmented Mean Group (AMG) estimation and Common Correlated Effects (CCE) estimation. The analyzes conducted showed that competition has a positive and significant impact on the financial performance of the sample countries.

ASEAN Regional Integration: The Philippines' domestic constraints to Physical connectivity

The ASEAN Master Plans for ASEAN Connectivity pursue the easement on the flow of goods, services, and people in the region as it endeavors to create a globally competitive single market and production base. However, data shows a substantial infrastructural gap among member-states with a significant constraint on physical connectivity at the regional level. This stark reality on the infrastructure gap is relevant to the Philippines as it continued to lag behind other ASEAN members on the infrastructure pillar of the World Economic Forum’s Global Competitiveness Index (WorldBank,2018).This paper looks into the domestic affairs of the Philippines in terms of financial capacity, governance scheme, and stability-security situation - and its implications on the country’s infrastructural gap in the ASEAN Region. Content analysis is used in exploring the literature, including ASEAN papers, academic essays, international organizations, government reports, and other related documents. Findings revealed that the Philippines exhibit wide infrastructural gaps that have long compromise edits competitiveness. Specifically, the Philippines faces severe domestic problems such as reduced spending on infrastructural development, coupled with critical institutional challenges and issues on stability and security. This paper argues the primacy of good governance as the precondition for a well-connected and sustainable infrastructure. Hence, reforms should focus on structuring domestic politics to address the infrastructural gaps. Changes may include the adaption of mechanisms to control corruption, ensures effective coordination among agencies, and improves the absorptive capacity in managing and implementing infrastructural projects.

Competitiveness of Ecuador’s Flower Industry in the Global Market in the Period 2016–2020

More intense floriculture activity in Ecuador could mean huge improvements for the country’s economic growth, while at the same time would be a sustainable exploitation of its natural resources. This study aims to help floriculture entrepreneurs in Ecuador with production planning, investment, and marketing strategies. With this in mind, two main objectives are addressed in the paper. The first one is to obtain an analytical overview of the world’s flower industry and the chief exporting and importing countries, as well as of the types of flowers that are offered and demanded. The second is to determine the competitive position of Ecuador’s flower industry and that of its direct competitors in the global cut flower marketplace. To accomplish the latter, we used Balassa’s and Hinloopen and Van Marrewijk’s measures and carried out statistical tests to validate the results. These indicated that both Ecuador and Colombia enjoy a strong comparative advantage among their direct competitors: the Netherlands, Kenya, and Ethiopia. Although the 2018 Logistics Performance Index and the 2017–2018 Global Competitiveness Index rankings put Ecuador in the 70th and 97th position worldwide, respectively, our findings show that Ecuador has the potential to achieve higher market shares in the flower trade globally. Consequently, strategic production policies should be implemented for Ecuadorian flower companies to adapt to the international flower trade requirements and for improving the production and supply chain technologies so that Ecuador can reach other foreign markets.

Social Responsibility: Opportunities for Integral Assessment and Analysis of Connections with Business Innovation

The paper proposes an approach to the integrated assessment of the social responsibility of EU countries with a combination of data from three international indices most relevant to the monitoring of social responsibility at the macroeconomic level: the Global Sustainable Competitiveness Index, the Sustainable Development Goals Index and the Social Progress Index. Applying the method of taxonomic analysis on the example of index values for EU countries, we assessed the differences and leaders in ensuring social responsibility. The authors do not consider country-level social responsibility only as a consequence of the development of responsible practices at all levels. Taking into account that social responsibility should be a prerequisite for expanding opportunities in all spheres, in particular, in business, the authors conducted a correlational analysis of the relationship between the taxonomic indicator of social responsibility and the development of innovative business. As a result, we confirmed significant connections with “Business sophistication” indicators (as part of the Global Innovation Index) and the share of innovative firms of total SMEs (according to OESD statistics). The obtained results strengthen the grounds for considering social responsibility not only as an important socially oriented concept, but also as a reliable basis for the development of innovative business due to the created comfortable institutional environment of business development.