Strategies and competitiveness for emerging countries: A comparative study among three South-American countries

• Published in: International journal of emerging markets 2017-01, Vol.12 (1), p.125-139
• Main Authors: Castro-Gonzales, Segundo J., Espina, Maritza I., Tinoco-Egas, Raquel M.
• Format: Article
• Language: English
• Subjects: Economic growth; Emerging markets; Entrepreneurs; Foreign investment; Globalization; International trade; Knowledge management; Literature reviews; Public policy; R&D; Research & development; Researchers; Studies
• ISSN: 1746-8809; 1746-8817
• DOI: 10.1108/IJoEM-12-2014-0222

Purpose The purpose of this paper is to assess the strategies for improving the competitiveness of Ecuador (ECU), Colombia (COL) and Peru (PER). It is one of the first studies using 36 indicators within the context of three South-American countries. It fulfills the lack of knowledge at the scientific work and its practical objective by identifying the factors that public policy may take into consideration urgently to improve the global competitiveness level of the countries for a sustainable development and considerations for a long-term integration. Design/methodology/approach It analyzes data of four-year average of international sources such as: The International Monetary Fund, The World Bank, The United Nations, among others. The factors were selected after a careful literature review, the final selection and the weight of each determinant was calculated using partial least squares-structural equation modeling. The calculation of the national and international competitiveness indexes used the double diamond for competitiveness theoretical frame. Findings From a national perspective, it was found that COL is the most competitive country followed by PER in the second place and ECU is in third. Internationally, the authors have found also that COL is the most competitive economy, PER in second place and ECU is in third. Research limitations/implications This study has found that in order to improve the level of national competitiveness, ECU has to concentrate on improving and strengthening formal and non-formal institutions, which are reflected in: four factors, PER four, and COL three. To reach international competitiveness, ECU should improve four factors, PER five, and COL five formal and non-formal institutions. Practical implications This research is the first one on its field, it uses 36 competitiveness indexes and the PLS-SEM statistic methodology to assign the weight of competitive indicators and the DD theoretical frame to determine the relevance of its factors and it is oriented to advise decision-makers and provides the appropriate police guidelines for the national competitiveness strategy and improve their quality of life of its residents from: ECU-COL-PER. On the other hand, the academic implications of these results appear when calculating the weight-load competitiveness indexes using inferential multivariate analysis; it provides researchers and practitioners an analysis tool for comparing competitive factors of emerging countries from the