Does Competitiveness have Anything to do With People?

Abstract

Research Question: Improvement of the educational system facilitate the access to labour market and affect the stability, and affect the competitiveness index. On the other hand, the country with a high score of GCI have a better educational system and more stable labour market. Motivation: Our goal was to investigate how important it is for a country to have educated people and how difficult it is to achieve the high rank in labour market efficiency without them. Results of the previous studies showed that a higher education is connected with the labor market. According to this statement in the paper we analyzed two indicators the Higher education and training and Labor market efficiency and their influence on the competitiveness score of the countries. Idea: The main idea was to analyzed how the Higher education and training and Labor market efficiency on the competitiveness score of the country. Data: The data were collected from The Global Competitiveness Report 2015-2016. We analysed the influence of Higher Education and Training pillar and Labour Market Efficiency pillar on the overall rankings of 15 top competitiveness countries and 10 Balkan countries. Tools: In the paper we used correlation, clustering, and regression analysis. Firstly, we compared the GCI 2015-2016 and the GCI 2014-2015. Secondly, we did cluster analysis between influential indicators in higher education and training pillar (pillar 5) and for Labour market efficiency pillar (pillar 7) to identify difference between top 15 and Balkan region countries. Regression analysis has been performed to determine the most influential indicators on GCI in pillar 5 and pillar 7. Findings: The most important result is that the human resource development and market demands for competences affect the development of the country's economy. Contribution: Results may have important implications for labor market efficiency and strategic national labor market framework development.