A new measure of regional competitiveness

Abstract

Purpose The purpose of this paper is to provide a measure of competitiveness of the Spanish autonomous communities from a multidimensional and dynamic perspective for the period 2008-2016. Design/methodology/approach This paper adopts a broad definition of competitiveness based on five key environments (productive capital, human capital, social and institutional capital, infrastructure and knowledge) and comprising 53 indicators. The method used to construct the competitiveness index is based on the P-distance proposed by Pena Trapero (1979), which objectively assigns weights to the indicators. There is an important advantage in the methodological proposal of this study, as it allows analyzing the behavior of partial and aggregated indicators from a dynamic perspective, taking the same value as a reference for the entire period. Therefore, not only a classification obtained for each year but also the variation that occurs in terms of the reference period can be analyzed. Findings The classification of the autonomous communities is established using common intervals based on the results obtained for the whole period, i.e. 2008-2016. The data point to the unequal situations of the autonomous communities. The results also reveal that the evolution of the regional competitiveness synthetic index is clearly cyclical and the drop recorded in the recessive period is less pronounced than the increase recorded in the growth phase. Originality/value The main innovation of the competitiveness index presented here lies in its allowing comparisons over time.

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Regional Competitiveness as an Aspect Promoting Sustainability of Latvia

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