Competitiveness Index

Abstract

In this work, an Industrial Competitiveness Index is used as a composite measure for multidimensional economic performance, covering profitability, productivity and output growth. The main advantage of this approach is the aggregation of the different dimensions of the competitiveness concept into one final index score on which an overall assessment can be based. This index approach enables relative competitiveness comparisons across industries, countries and over time. The competitiveness index of the food and beverage manufacturing sector in 17 countries is analysed empirically, using 2003–2007 Eurostat data. The results show that in 2003–2007 the competitiveness ranking is headed by beverage manufacture both in Europe and in each country separately. According to their geographical location, countries present some differences on competitiveness ranking. Cluster analysis based on the index scores for profitability, productivity and growth variables has been used to identify four different types of performance groups. The most competitive cluster includes the majority of the beverage industries.