Global Competitiveness Index

The Global Competitiveness Index (GCI) (growth competitiveness index ) is an indicator of the competitiveness of individual countries. It is collected by the World Economic Forum and published as part of the “ Global Competitiveness Report ”. It replaced the “Growth Competitiveness Index” that was previously used and calculated using different algorithms .

Global Competitiveness Index

structure

The Global Competitiveness Index is calculated from three sub-indices, which in turn are structured as follows:

Sub-index "Basic Requirements" (basic requirements, needs): 01st pillar "Institutions", share 25%; 02nd pillar "Infrastructure", share 25%; 03rd pillar "Macroeconomic Environment", share 25%; 04th pillar "Health and primary education", share 25%

Sub-index "Efficiency Enhancers" (efficiency-increasing factors): 05th pillar "higher education and training", share 17%; 06th pillar "Goods market efficiency", share 17%; 07th pillar "Labor market efficiency", share 17%; 08th pillar "Financial market development", share 17%; 09th pillar "Technological maturity", share 17%; 10th pillar "Market size", share 17%

Sub-index "Innovation and Sophistication Factors" (innovation and sophistication factors): 11th pillar "Economic development status", share 50%; 12. "Innovation" pillar, share 50%

calculation

To determine the Global Competitiveness Index , the three named sub-indices are weighted differently depending on the " gross domestic product per capita (BIPpK)" of the country examined :

Weighting of the sub-indices according to GDPpK (in US dollars)	BIPpK below 2,000	BIPpK 2,000 ... 2,999	BIPpK 3,000 ... 8,999	BIPpK 9,000 ... 17,000	BIPpK over 17,000
Subindex "Basic Requirements"	60%	40 ... 60%	40%	20 ... 40%	20%
Subindex "Efficiency Enhancers"	35%	35 ... 50%	50%	50%	50%
Subindex "Innovation and Sophistication Factors"	5%	5 ... 10%	10%	10 ... 30%	30%

Growth Competitiveness Index (historical)

structure

The Growth Competitiveness Index , which is no longer used to calculate the "Global Competitiveness Report", was structured as follows:

It consisted of the three sub-indices “ Technology ”, “Public Institutions” and “ Macroeconomics ”. These were created on the basis of a combination of facts (e.g. inflation ) and surveys (“Executive Opinion Survey”). Both partial data sets were included in the index.

calculation

To calculate the Growth Competitiveness Index , the countries were divided into so-called core innovators (more than 15 US utility patents per million population) and non-core innovators (all other countries). For core innovators, the role of innovation and technology was specially highlighted. The Growth Competitiveness Index for Core Innovators was calculated as follows:

1/2 technology + 1/4 public institutions + 1/4 macroeconomics.

For non-core innovators, the Growth Competitiveness Index was calculated as follows:

1/3 technology + 1/3 public institutions + 1/3 macroeconomics.

Technology index

The technology index was formed from the innovation sub -index , the technology transfer sub-index and the sub-index for information and communication technology (ICT). The following results from surveys were included in the innovation sub-index: How much the state and universities spent on research and development , whether the companies implement new technologies well and where the state would be compared to the world leaders. The technology transfer sub-index consisted of two aspects. The first sub-aspect looked at whether foreign funding was an important part of new technologies. In the second area, it was determined whether licensing is important in order to acquire new technologies. The ICT sub-index was created on the one hand through surveys and on the other from data collections. The former included questions such as Internet access in schools, whether there were laws governing communication technologies , and whether the government wanted to promote communication technologies. Cell phone and Internet users per inhabitant as well as telephone lines and computers per 100 inhabitants were considered as “hard” factors .

Public Institution Index

The index on public institutions consisted of a “Contracts and Law” sub-index and a corruption sub- index . The contracts and law sub-index was determined through surveys. Three thematic areas were considered: First, whether financial assets and wealth are well protected by law. Second, it was of interest whether the government was neutral towards bidders in public affairs. Third, it was relevant to what extent the government had an influence on the private sector. The corruption sub-index described the frequency of bribery in import - export transactions, public institutions and annual tax payments.

Macroeconomic Environment Index

The index for the macroeconomic environment consisted of a stability sub-index and a government waste sub-index. People were also interviewed for the macroeconomic stability index. What was of interest here was whether, in the opinion of the respondents, the country could enter a recession in the following year and whether companies would find it easier to obtain loans. The facts used were the performance deficit, the national savings rate , inflation, real exchange rate changes to US $, and home savings interest rates. The Government waste composite examined the level of trust in the government and how often state support flowed into uneconomical areas.

Web links

Rankings 2014/2015 (English)
The Global Competitiveness Index 2012-2013 data platform (English)
Index values from 2011 (PDF; 20 kB)

Individual evidence

↑ Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Figure 1: The Global Competitiveness Index framework).

↑ Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Appendix: Computation and structure of the Global Competitiveness Index 2012–2013).

↑ Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Table 1: Subindex weights and income thresholds for stages of development).

↑ ^a ^b Chapter 1.1: The Growth Competitiveness Index: Analyzing Key Underpinnings of Sustained Economic Growth. (No longer available online.) World Economic Forum , November 20, 2003, formerly the original ; accessed on September 22, 2012 (English, PDF, 211 kB). ( Page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2

[1] Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Figure 1: The Global Competitiveness Index framework).

[2] Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Appendix: Computation and structure of the Global Competitiveness Index 2012–2013).

[3] Chapter 1.1: The Global Competitiveness Index 2012-2013: Strengthening Recovery by Raising Productivity. World Economic Forum , September 6, 2012, accessed on September 22, 2012 (English, PDF, 2.83 MB; here: Table 1: Subindex weights and income thresholds for stages of development).