National Competitiveness for Welfare: The Solution or an Illusion?

Abstract

Abstract-The aim of this paper is to analyze the theoretical foundations of the national competitiveness concept from the economic perspective. National competitiveness does not seem to be a natural fit with economic theory. Classical economic authors usually discuss either complementary or competing specializations between countries, and competition is usually addressed at the level of manufactures or industries. In this paper, however, I show that key ingredients of the modern national competitiveness concept already exist in classical economics. Modern conceptions of competitiveness develop it in several approaches and levels, and link it with social goals as living standards. It is this link that we try in this paper to analyze the theoretical foundations. Finally, this paper addresses the principal modern conceptualizations of competitiveness by putting an emphasis on the national level.