-
Effective institutions - which create
an economic environment in which businesses can develop, and
consumers have confidence. These should be ‘sound, honest and fair’.
-
Effective infrastructure – which
provides effective
transport and
energy supplies.
-
A sound macro-economic environment,
including sound
public finances, and low and stable inflation.
-
A
healthy and
educated
labour force, with an emphasis on higher education, and the
continuous upgrading of skills.
-
Efficient goods markets, with high
levels of
competition, and low levels of
regulation.
-
Efficient
labour
markets, which are flexible, and provide effective
incentives to work and effort.
-
An effective
financial
market, which provides a continuous flow of capital to
business, effectively manages financial risk, and is trustworthy and
transparent.
-
The ‘readiness’ of firms to adopt new
technology.
-
The extent to which firms operate in large
global markets, which enable them to gain from
economies of
scale.
-
Business sophistication, which relates
to the effectiveness of business networks, the quality of supporting
industries, and advanced business processes.
-
Continuous innovation, which
counteracts
diminishing returns to existing technology.
Read this....imports improve productivity
Competitiveness
The
World Economic Forum lists the following indicators of
competitiveness:
