Abstract
Discussions on country competitiveness have become widespread; however, country competitiveness means different things to different people. It is often used to mean the ability to sell more in foreign markets, a concept criticised by Krugman (1994:44) because its pursuit could lead to beggar-thy-neighbour policies and/or trade wars. Such a definition also contradicts the theory that all countries gain from international trade through comparative advantage, and it implies an acceptance of the mercantilist promotion of trade surpluses that was in vogue from about 1500 to 1800. We prefer to consider national competitiveness as a means to an end — the end being the well-being of the nation’s residents; however, we acknowledge that the measurement of well-being is fraught with difficulties, especially when predicting how the future will evolve (Daniels, 1991).
E. ClaiborneRobins DistinguishedChair, University of Riclunond, Riclunond,VA, U.S.A.Phone 1–804-289-8591, fax 1–804-289-8878.
Professor and Dean, Facu1ty of Social Sciences, University of Ljubljana, PO Box 2547, 1000 Ljubljana, Slovenia. Phone +386 (0) 61 1681 461, fax +386 (0) 61 1682 329
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© 2001 John D. Daniels, Marjan Svetličič
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Daniels, J.D., Svetličič, M. (2001). Competitiveness of Small Countries. In: Salvatore, D., Svetličič, M., Damijan, J.P. (eds) Small Countries in a Global Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230513198_8
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DOI: https://doi.org/10.1057/9780230513198_8
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