competitiveness
- Created by: Fi Alade
- Created on: 20-04-14 11:43
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- Competitiveness
- Measures
- relative unit labour costs - expressed in an index number
- relative productivity measures e.g. output per worker per hour
- global competitive index by WEF
- 12 pillars of competitiveness
- e.g. innovation, health and primary education, goods market efficiency, infrastructure etc.
- 12 pillars of competitiveness
- exports compared to imports
- if export prices rise faster than import prices country loses competitiveness
- increased incentive to import
- if export prices rise faster than import prices country loses competitiveness
- influences
- real exchange rate
- nominal exchange rate x domestic price level --------------- foreign price level
- wage costs and non-wage costs
- high wage costs = high prices
- health and safety regulations
- NI contributions
- environmental regulations
- labour productivity
- education and training
- human capital
- infrastructure
- labour market flexibility
- ease of hiring/firing, trade unions etc.
- quality
- real exchange rate
- ability to sell its goods and services across domestic and international markets
- govt. policy
- supply side policies
- increasing occupational mobility
- macroeconomic stability
- low and stable inflation rate, steady economic growth
- reducing red tape
- improving infrastructure
- privatisation
- supply side policies
- Measures
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