Justine Falciola, Marion Jansen, Valentina Rollo · 2020
World Development · World Development

Defining firm competitiveness: A multidimensional framework

Defining and measuring competitiveness remains a subject of interest as well as debate: policy makers need to understand how competitive their country is relative to others, and how their competitive position evolves overtime (Fagerberg & Srholec, 2017). As such, well-known indicators of country performance have been developed over the years. While the business and economic literature recognise that “It is the firms, not nations, which compete in international markets” (Porter, 1998), the existing indices do not asses the capabilities of businesses. This paper fills this gap by proposing a multidimensional framework of firm competitiveness. Through factor analysis, we test the framework using firm level data from the World Bank Enterprise Surveys on over 100 countries. Regression based sensitivity checks confirm that the firm level index built in this paper positively correlates with commonly used proxies of firm competitiveness (i.e. labour productivity, the probability to export, etc.). The framework is applicable to firms of different size and export status.

Full publication is available on: DOI 10.1016/j.worlddev.2019.104857

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Marion Jansen

Marion Jansen

Ms. Marion Jansen is Director of the Trade and Agriculture Directorate (TAD) at the OECD since 14 September 2020. Before joining the OECD, Ms. Jansen was the Director for the Division of Market Development and Chief Economist at the International Trade Centre (ITC) in Geneva having also been their Section Chief for Research and Strategies for Exports (2014-2018). She was responsible for ITC’s flagship publication, the SME Competitiveness Outlook, oversaw ITC’s contributions to G20 processes, led the agency’s export strategy work and oversaw ITC’s work on trade and firm level data. Prior to this, she held different positions in the Economic Research and Statistics Division of the World Trade Organization (2012-2014; 1999-2009). As a counsellor, she provided economic advice to WTO dispute settlement panels, co-managed the WTO Chairs Programme and provided lead contributions to the WTO’s World Trade Report. From 2009 to 2012, Marion Jansen was the Head of the Trade and Employment Programme at the International Labour Organization in Geneva. In this role, she oversaw research, policy advice and technical assistance on trade and employment. She also developed a stream of work on skills for trade and economic diversification. From 1998-1999 Marion Jansen worked in the private sector (Maxwell Stamp PLC, UK). Ms. Jansen has published widely on international trade and global governance, including on regional integration, services liberalization and agricultural trade. She has lectured in multiple academic institutions, including the University of Geneva and the World Trade Institute. Ms Jansen, holds a Doctorate Degree in International Economics from the Pompeu Fabra University (Spain); a Master's Degree in International Economics from the Universität Konstanz (Germany) and a Bachelor's Degree in Business Administration and Economics from the Universität Passau (Germany). She also has a Bachelor’s Degree in International and Developmental Economics from the Université Toulouse 1 Capitole (France).

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