Paul R. Krugman’s scientific contributions

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Publications (1)


Competitiveness: A Dangerous Obsession
  • Article

September 1994

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531 Reads

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2,415 Citations

Paul R. Krugman

The view that nations compete against each other like big corporations has become pervasive among Western elites--many of whom are in the Clinton administration. As a practical matter, however, the doctrine of "competitiveness" is flatly wrong. The world's leading nations are not, to any important degree, in economic competition with each other. Nor can their major economic woes be attributed to "losing" on world markets. This is particularly true in the case of the United States. Yet Clinton's theorists of competitiveness--from Laura D'Andrea Tyson to Robert Reich to Ira Magaziner--make seemingly sophisticated arguments, most of which are supported by careless arithmetic and sloppy research. Competitiveness is a seductive idea, promising easy answers to complex problems. But the result of this obsession is misallocated resources, trade frictions and bad domestic economic policies.

Citations (1)


... Furthermore, it identifies and construct some concepts into theory building from national prospects relationships to the globalised economy. Porter (1990), and Krugman (1994), stipulated that sometimes for competitiveness to happen it costs economic growth efforts. However, Porter's established the competitive advantage of nations in the 1990s, aiming to achieve country's prosperity through competitiveness to boost productivity. ...

Reference:

THE EFFECTS OF COMPETITIVENESS AND GOVERNANCE QUALITY ON ECONOMIC GROWTH OF SOUTH AFRICA
Competitiveness: A Dangerous Obsession
  • Citing Article
  • September 1994