The EU Global Competitive Force Index

Abstract

Introduction. With this paper we want to show that the study of international competitiveness only at a country level does not correspond to the contemporary development of the global economy. The author presents the methodology for competitiveness grouping of international integration groupings’ member states in order to assess the global competitive force of trade and economic groupings in the world economy. Based on the data of the Global Competitiveness Report 2019 regarding the competitiveness of the EU Member States, the Global Competitive Force Index of the EU as an interstate integration grouping has been calculated. The Index will help evaluate economic integration or disintegration processes in the global economy. The research demonstrates the necessity of the annual global competitive force ranking of international integration groupings. This study will enhance knowledge in the field of economics by grouping the EU Member States’ global competitiveness indices according to 12 criteria and identifying the new quantitative and qualitative integrated Global Competitive Force Index of an international integration grouping. To reach this objective, we will define the Integrated Global Competitive Force Index as the average of the individual points of the EU Member States in 2019. The novelty of our study lies in the comparative analysis of the three largest interstate integration groupings from the perspective of their competitive force. The introduction of the new integrated Global Competitive Force Index of interstate integration groupings will help competition policy makers decide which processes of economic integration or disintegration should be preferred in order to increase their competitive force in the global economy. The purpose. Research and calculation of the European Union’s Integrated Global Competitive Force Index to analyze the attractiveness of the European Union in terms of global competitive force. Based on the calculation of the EU Integrated Global Competitive Force Index 2019, the attractiveness of the EU competitive environment has been determined according to 12 criteria. Results. The ranking of the three largest regional integration groupings of the world economy has been formed. Specification of the assessment and results of the integrated index of interstate integration groupings’ global development can be used for the competition policy development of the individual member state of an integration grouping as well as the communitarian competition policy. The EU Integrated Global Competitive Force Index will help understand what the integration grouping’s competitive force means and whether the process of interstate integration of countries contributes to enhancing the competitive force of an individual country and the integration grouping as a whole. To calculate the EU Integrated Competitive Force Index, we will analyze the Member States on 12 competitive strength criteria, and Global Competitiveness Report 2019 will serve as the basis for our study. According to our calculations, the EU Integrated Global Competitive Force Index is 72 points out of 100. Conclusion. The results of a comprehensive integrated assessment of the competitive force of 28 EU Member States demonstrate a high overall competitive force index of the grouping, indicating the EU’s impact on global competitive processes. The EU Global Competitive Force Index can be used both as an indicator of the separate international integration grouping’s development and as a global criterion for the effectiveness of interstate integration groupings in the transformation of international competitive relations. Discussion. The highlighting of the EU global competitive force is a requirement for the contemporary development of the global competitive environment, since interstate integration groupings are the main actors of the world economy, which significantly affect the distribution and growth of competitive force.