| | - |
|
China ranks 34th in Global Competitiveness Index |
 |
+ |
- |
16:40, October 31, 2007 |
China is up one rank this year at 34th place in the Global Competitiveness Index in its Global Competitive Report just released by the World Economic Forum.
According to the report conducted among 131 countries by World Economic Forum, China draws its key competitive advantage from its significant domestic and foreign market size (ranking 2nd and 1st, respectively) allowing the country's companies to benefit from significant scales of the economies.
Macroeconomic stability is another source of competitive advantage (ranked 7th), with manageable government debt, high national savings and low inflation.
China's competitive performance also reveals the need to address weaknesses particularly in three areas: financial market, higher education and training, and the quality of public and private institutions.
The report gives 12 pillars of competitiveness in three stages of development-basic requirements including institutions, infrastructure, macroeconomic stability and health and primary education.
The first stage of development is considered as factor-driven economies.
The second stage of development is considered as efficiency-driven economies. Efficiency enhancers include higher education and training, goods market efficiency, labor market efficiency, financial market sophistication, technological readiness and market size.
China is in the transition from stage 1 to stage 2.
The third stage of development is considered as innovation-driven economies. Innovation and sophistication factors include business sophistication and innovation.
According to the report, the United States remains its leading position as the world's most competitive economy ahead of Switzerland, Denmark, Sweden and Germany in the Global Competitive Index.
These economies are all innovation-driven economies with business sophistication and strong higher education and training market efficiency and financial market sophistication.
The US is ranked 1st on the innovation pillar, with world-class scientific research institutions (ranked 2nd), high company spending on R and D (ranked 2nd) and significant collaboration between the business and university sectors in research (ranked 1st).
The culture of innovation is strengthened by other critical factors such as high university enrollment and strong intellectual property protection. The country's markets are extremely efficient in allocating human and financial resources to their most effective use. The labor markets are ranked 1st out of all countries. Financial markets provide needed capital for business creation and innovation through a variety of sources, most particularly venture capital for which the US is ranked number 1.
The weaknesses are in more basic areas such as macroeconomic imbalances and some aspects of the institutional environment. The quality of its public institution is also relatively low. The greatest weakness is its macroeconomic stability.
[1] [2]
|
|
|
Comment
Tell A Friend
Print Format
Save Article