earticle

영어

As far as international competitiveness index concerns, lots of controversy has been arisen to see if the index is good enough to represent nation's productivity. The index is mainly criticized due to the fact that the index is heavily weighed on soft or qualitative data which comes from the survey. Krugman's proposition in this literature is that the international competitiveness indexes which have been publishing annual basis by the IMD and WEF could not be represented nation's productivity and the indexes are merely a rhetoric. The research is basically designed to test Krugman's hypothesis. The result reveals that the IMD competitiveness is closely related to nation's productivity except internationalization, government, and finance. The IMD index, however, is not enough to explain the increasing rate of nation's productivity. Whereas, the WEF competitiveness index is limited to explain nation's productivity and the increasing rate of nation's productivity as well. To this end, the IMD competitiveness index is superior to the WEF competitiveness index in terms of supporting Krunman's hypothesis.