THE INSTITUTIONAL DETERMINATE OF COMPETITIVENESS: SURVEY OF SELECTED EMERGING AND EU COUNTRIES
THE INSTITUTIONAL DETERMINATE OF COMPETITIVENESS: SURVEY OF SELECTED EMERGING AND EU COUNTRIES

Summary/Abstract: The paper focuses on the influence of the institutions determinate of competitiveness in emerging and EU countries. Based on survey of literature including Scott’s (2001) idea of three institutional pillars: regulatory, normative and culturalcognitive pillar, we constructed framework of institutional competitiveness index. Our framework also offers a modified methodology for the estimation of a theoretically grounded and empirically validated measure of the institutional competitiveness which is expected to contribute to the development of literature for emerging countries. This paper captures interrelated drivers that collectively represent each of these pillars and estimate this framework using multiple data sets covering 22 emerging economies and 14 EU countries over the period 2006-2014. The findings indicate and confirm a positive and separate influence between the institutional mechanism and competitiveness as both are very much interrelated and they depict the general level of efficiency of a particular country. While the institutional mechanism in emerging nations is developing, results for the EU countries present positive and significant relationship between rule of law and national competitiveness. These insights might be useful in the formulation of improved national economic policies and institutional reforms towards attainment of national competitiveness.

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