Chapter | The Global Competitiveness Report 2003-2004 | 2004

Building the Microeconomic Foundations of Prosperity: Findings from the Business Competitiveness Index

by Michael E. Porter

Abstract

In The Global Competitiveness Report 2003-2004
Competitiveness has become a central preoccupation of both advanced and developing countries in an increasingly open and integrated world economy. Despite its acknowledged importance, the concept of competitiveness is often misunderstood. Here, we define competitiveness concretely, show its relationship to a nation's standard of living, and outline a conceptual framework for understanding its causes.
The Business Competitiveness Index (BCI), based on this conceptual framework, provides a data-rich approach to measuring and analyzing the fundamental competitiveness of a large number of countries in a comparative context. This year's BCI includes 101 countries, up from 80 last year. Our aim is to rank country competitiveness across countries, identify individual countries' competitive strengths and weaknesses, reveal the trends in competitiveness in the global economy, and extend our basic knowledge about the sources of competitiveness and the process of economic development.

Keywords: Economics; Growth and Development;

Format: Print Read Now

Citation:

Porter, Michael E. "Building the Microeconomic Foundations of Prosperity: Findings from the Business Competitiveness Index." In The Global Competitiveness Report 2003-2004, edited by Michael E. Porter, Klaus Schwab, and Xavier Sala-i-Martin, 29–56. Oxford University Press, 2004.

About the Author

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Michael E. Porter
Bishop William Lawrence University Professor
Strategy

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