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Role of Real Sector and HDI: Does Competitiveness Contribute?

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Abstract

This study envisages exploring the role of business competitiveness as a potential moderator in boosting the capacity of the real sector to cause development. Hence, it is proposed that competitiveness policy can be elementary in increasing the development-based productivity of the real sector. Using the panel data of 110 countries between 2006 and 2017, the FGLS estimates show that business competitiveness policy is useful in increasing productivity of service sector and agriculture sector of low- and low-middle-income countries, while it helps increase productivity of the industry sector and agriculture sector of high-income countries. It is evident from the estimates that higher-income countries are extracting higher returns from the competitiveness policy. Surprisingly, competitiveness reaps positive externality as the overall model shows higher returns to competitiveness than income-wise models.

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Notes

  1. Under or over dispersion compares the mean value of the data with its standard deviation.

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Authors and Affiliations

  1. Department of Economics, Division of Management and Administrative Science, University of Education, Lahore, Pakistan

    Noman Arshed

  2. Department of Economics and Statistics, University of Management and Technology, Lahore, Pakistan

    Rukhsana Kalim

  3. Department of Economics and Statistics, University of Management and Technology, Lahore, Pakistan

    Mubbashir Iqbal

  4. Department of Banking and Finance, University of Management and Technology, Lahore, Pakistan

    Sadaf Shaheen

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  1. Noman Arshed
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Appendix 1

Appendix 1

List of Countries

Low Income Countries

Lower Middle Income Countries

Upper Middle Income Countries

High Income Countries

Bangladesh

Armenia

Albania

Argentina

Benin

Bolivia

Algeria

Australia

Burkina Faso

Cameroon

Brazil

Austria

Burundi

El Salvador

Bulgaria

Azerbaijan

Cambodia

Egypt

China

Barbados

Chad

Georgia

Colombia

Belgium

Ethiopia

Ghana

Costa Rica

Bosnia and Herzegovina

Gambia, The

Guyana

Ecuador

Botswana

Kenya

Honduras

Hungary

Canada

Madagascar

India

Jamaica

Chile

Mali

Indonesia

Jordan

Côte d'Ivoire

Nepal

Lesotho

Kazakhstan

Croatia

Tanzania

Mauritania

Macedonia

Cyprus

Uganda

Mongolia

Malaysia

Denmark

Zimbabwe

Nigeria

Mauritius

Estonia

 

Pakistan

Mexico

Finland

 

Paraguay

Panama

France

 

Philippines

Peru

Germany

 

Senegal

Romania

Greece

 

Sri Lanka

Serbia

Guatemala

 

Vietnam

South Africa

Iceland

  

Thailand

Ireland

  

Venezuela

Israel

   

Italy

   

Japan

   

Korea, Rep.

   

Kuwait

   

Latvia

   

Lithuania

   

Luxembourg

   

Malta

   

Namibia

   

Netherlands

   

New Zealand

   

Nicaragua

   

Norway

   

Oman

   

Poland

   

Portugal

   

Qatar

   

Russian Federation

   

Saudi Arabia

   

Singapore

   

Slovak Republic

   

Slovenia

   

Sweden

   

Switzerland

   

Turkey

   

Ukraine

   

United Arab Emirates

   

Uruguay

   

Zambia

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Arshed, N., Kalim, R., Iqbal, M. et al. Role of Real Sector and HDI: Does Competitiveness Contribute?. J Knowl Econ 14, 3044–3070 (2023). https://doi.org/10.1007/s13132-022-00997-w

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