The Relationship between “Labor Market Efficiency” and “Business Sophistication” in Global Competitiveness

Abstract

The concept of competitiveness has considered by many researchers and governments over the last decade and many studies have been done about this subject. At the same time since 1979, World Economic Forum (WEF) has published annual Global Competitiveness Reports for enabling national economies to achieve sustained economic growth and long-term prosperity. The main objective of this research is survey of interactions between "labor market efficiency" and "business sophistication", from set of indices of global competitiveness among 142 countries surveyed by the World Economic Forum in 2011 to present data for improving national competitiveness among different countries around the world. Present study is practical and its method is "secondary analysis" and "descriptive - analytic". Time horizon considered in this study is "Cross-sectional" and to answer research questions "Canonical Correlation Analysis" was used. The results illustrates that there is a positive and significant relation between the sub-indices of "labor market efficiency" and "business sophistication".