Impact of Competitiveness Drivers on Global Competitiveness Index

The study is design to examine the impact of basic requirements, efficiency enhancers and innovation and sophistication factors on global competitiveness index (GCI) on East Asia and Pacific region countries. Thus, matrix approach is used and regression model is also applied to compare the result. Philippines and Cambodia are not efficient to manage innovation and sophistication factor to make the nations more competitiveness in terms of productivity and prosperity because their coefficients are negative. Only five countries are significantly efficient to deal with three drivers to make the nations more competitiveness. The coefficients of three sub-indices of the remaining countries are positive except for innovation and sophistication of Philippines and Cambodia and the evidence is same which is obtained from regression analysis. Limited numbers of papers have focused on various definitions of GCI and identified factors for formulating GCI. Few studies have examined the impact of some specific factors on GCI. But this study is new one in the sense that it exclusively examines the impact of all the pillars categorised in three sub-indices (Basic requirements, Efficiency enhancers and Innovation & Sophistication) on Global Competitiveness Index which is expected to add value in the literature of global competitiveness.