Theory and methodology:
Theory and methodology:
an introduction
an introduction
Lecture 1
Lecture 1
Theory and methodology:
Theory and methodology:
an introduction
an introduction
Lecture 1
Lecture 1
COURSE OBJECTIVES
COURSE OBJECTIVES
•
•
Introduction to theory and methodology of
Introduction to theory and methodology of
international comparative studies related to
international comparative studies related to
countries and enterprises in global environment
countries and enterprises in global environment
•
•
Presentation of the latest reports assessing
Presentation of the latest reports assessing
international competitiveness, economic
international competitiveness, economic
freedom, quality of institutions and risk in
freedom, quality of institutions and risk in
international economic relations
international economic relations
Course requirements and evaluation:
Course requirements and evaluation:
•
•
Class participation
Class participation
= 10%
= 10%
•
•
activity /classroom discussion
activity /classroom discussion
= 10%
= 10%
•
•
discussion papers
discussion papers
= 20%
= 20%
•
•
final exam (test
final exam (test
-
-
type)
type)
=
=
60
60
%
%
How to define competitiveness
How to define competitiveness
?
?
•
•
no generally accepted definition for the
no generally accepted definition for the
frequently used term
frequently used term
“
“
national competitiveness
national competitiveness
”
”
•
•
the term is often confused with categories such
the term is often confused with categories such
as
as
international competitive ability
international competitive ability
or the
or the
international competitive position
international competitive position
The notion of competitiveness
The notion of competitiveness
International
competitive
ability
International
competitiveness
International
competitive
position
International and external
determining factors
(internal and external
advantages
)
Source: Misala, 2006.
3 dimensions of international
3 dimensions of international
competitiveness
competitiveness
•
•
Macro
Macro
–
–
country perspective
country perspective
•
•
Me
Me
z
z
o
o
–
–
industry
industry
/regional perspective
/regional perspective
•
•
Micro
Micro
–
–
enterprise perspective
enterprise perspective
Definition of country
Definition of country
’
’
s
s
competitiveness
competitiveness
”
”
As a practical matter, however, the doctrine of
As a practical matter, however, the doctrine of
‘
‘
competitiveness
competitiveness
’
’
is flatly wrong. The world
is flatly wrong. The world
’
’
s
s
leading nations are not, to any important degree,
leading nations are not, to any important degree,
in economic competition with each other.
in economic competition with each other.
”
”
Competitiveness: A Dangerous Obsession
Competitiveness: A Dangerous Obsession
Paul Krugman
Paul Krugman
From
From
Foreign Affairs
Foreign Affairs
,
,
March/April 1994
March/April 1994
Professor of
Economics
and International
Affairs,
Princeton
University
Definition of country
Definition of country
’
’
s
s
competitiveness
competitiveness
Commentary by
Commentary by
John H. Dunning
John H. Dunning
”
”
Think again Professor Krugman:
Think again Professor Krugman:
Competitiveness
Competitiveness
does
does
matter
matter
”
”
Professor John H. Dunning is Emeritus Professor of International
Professor John H. Dunning is Emeritus Professor of International
Business at the
Business at the
University of Reading, UK, and Professor of International Busine
University of Reading, UK, and Professor of International Busine
ss at Rutgers
ss at Rutgers
University in the United States
University in the United States
Hierarchical system of the formation of
Hierarchical system of the formation of
socio
socio
-
-
economic competitiveness of a country
economic competitiveness of a country
based on Reiljan et al, 1999
Competitiveness & Competition: What
Competitiveness & Competition: What
’
’
s
s
the Difference?
the Difference?
Competitiveness
FEATURES
PROCESS
Competition
The concept of international
The concept of international
competitiveness
competitiveness
–
–
different approaches
different approaches
OECD
OECD
•
•
often used in analyzing countries'
often used in analyzing countries'
macroeconomic performance
macroeconomic performance
•
•
compares, for a country and its trading partners,
compares, for a country and its trading partners,
a number of salient economic features that can
a number of salient economic features that can
help explain international trade trends
help explain international trade trends
World Economy Research Institute
World Economy Research Institute
Poland: Competitiveness Report
Poland: Competitiveness Report
Competitiveness
Competitiveness
=
=
a country
a country
’
’
s ability
s ability
to achieve
to achieve
:
:
a sustainable increase in the standard of living,
a sustainable increase in the standard of living,
an improvement in a country
an improvement in a country
’
’
s competitive position in
s competitive position in
the global marketplace
the global marketplace
an increase in a country
an increase in a country
’
’
s investment attractiveness.
s investment attractiveness.
The National Competitiveness
The National Competitiveness
Framework Model
Framework Model
•
•
The
The
‘
‘
inputs
inputs
’
’
to national competitiveness (assets,
to national competitiveness (assets,
education and training, entrepreneurship and
education and training, entrepreneurship and
innovation, economic and technological
innovation, economic and technological
infrastructure)+ the essential conditions for national
infrastructure)+ the essential conditions for national
competitiveness (policies and institutions)=
competitiveness (policies and institutions)=
the
the
international competitive ability
international competitive ability
•
•
Growth performance, position in international trade =
Growth performance, position in international trade =
the international competitive position
the international competitive position
The Competitiveness Pyramid
The Competitiveness Pyramid
The National Competitiveness Council, Ireland
The Competitive Advantage of
The Competitive Advantage of
Nations
Nations
Michael Porter
Michael Porter
Professor at Harvard Business School
Professor at Harvard Business School
What is Competitiveness?
What is Competitiveness?
-
-
Michael Porter
Michael Porter
’
’
s definition
s definition
•
•
Competitiveness is determined by the
Competitiveness is determined by the
productivity with which a nation uses its human,
productivity with which a nation uses its human,
capital, and natural resources.
capital, and natural resources.
•
•
Nations compete in offering the most
Nations compete in offering the most
productive environment for business
productive environment for business
Determinants of Productivity and
Determinants of Productivity and
Productivity Growth
Productivity Growth
•
•
Macroeconomic, political, legal, and social
Macroeconomic, political, legal, and social
conditions for development
conditions for development
•
•
Microeconomic conditions of development
Microeconomic conditions of development
(quality of business environment; sophistication
(quality of business environment; sophistication
of local companies; competition)
of local companies; competition)
Porter
Porter
’
’
s Diamond
s Diamond
•
•
4 determinants of a nation
4 determinants of a nation
’
’
s competitive advantage
s competitive advantage
relative to other countries
relative to other countries
1.
1.
Demand conditions
Demand conditions
2.
2.
Factor conditions
Factor conditions
3.
3.
Related and supporting industries
Related and supporting industries
4.
4.
Company strategy, structure, rivalry
Company strategy, structure, rivalry
Porter
Porter
’
’
s Diamond
s Diamond
F ir m str a te g y ,
str u c tu r e , a n d
r iv a lr y
R e la te d a n d
su p p o r tin g
in d u str ie s
D e m a n d
c o n d itio n s
F a c to r
c o n d itio n s
Źródło: M. Porter , 2001.