If you want to measure intrrnational competitveness, I suggest using the OECD's indicators (you can easily download the related text from the attached link). To purpose of empirically analysing the competitveness, you may use an indicator of OECD as a time-varying variable in an econometric model (Especially in the gravity approach which is a popular approach in International trade).
the biggest problem in this question is to define the concept of "competitiveness" in international trade. As you know well, Paul Krugman is opposed to this concept. I do not think so, but it is true that we need a good definition of the "competitiveness" in international trade.
At any rate, without having a good concept, there will be no accuracy of measurement.
that is so confuse sometimes, many definition about competitiveness. i just look the competitiveness to know and make a strategy to repair production, export, the weaksnes of country and position the coutry in International trade.
If I had to do so, Il would also focus on non-price competitivess. See works from European Central Bank on emerging countries for example: https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1612.pdf
International competitiveness can be measured in terms of market share of a country in terms of different variety of goods traded,quantity demanded,quality of products,non-availability of resources of the importing country(for example,we import crude oil because of lack of this in our country),price factor ,availability of credit facilities for the importing country,credit rating of the countries to pay debts,etc.You can also refer international trade theories to get some clarity
There are many factors that may affect the country’s ability to successfully compete in world markets. I have focused on three determinants that may help us identify key elements, shaping competitive capacity in the critical and growing sector of agricultural exports, namely; relative prices (Al’assar, 2004), relative instability of production (Hassan et al., 2005), and efficiency of export performance (Hassan et al., 2005).
No single measure of international competitiveness has general acceptance in the literature, but an important aspect is the level of prices across countries (Ferto, 2003).
Previous research has extensively investigated product quality as a determinant of export performance, followed by price competitiveness as a value for money, service quality and relationship with importers or trust (lages et al., 2005).
It has been shown that competitive export price levels are positively related to export performance and export stage development.
Assessing a nation’s price competitiveness in the world markets is an elusive exercise.
based of Mr.Yoshinori said, defined of competitiveness make ambiguity to understand. but in my research will be focus to measure the ability of nations to compite with another country in international trade. all of ur suggestion will be add my understanding and as a literate in my research paper.
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According to the World Bank experts:
"Trade competitiveness is no longer about viewing exports and export performance in isolation. Increasingly, it is the result of strong interdependencies between imports and exports, as well as international flows of capital, investment, and know-how. In addition, modern, competitive services are vital as intermediate inputs to a high-performing private sector. Indeed, the interactions between all of these factors determine firm productivity. Through trade and foreign investment, developing countries can benefit from a range of ideas that come from abroad: intellectual property, trademarks, managerial and business practices, marketing expertise, and organizational models. The flows of goods, services, people, ideas, and capital are now interdependent and should be assessed jointly.
Finally, a phenomenon important to developing countries is the emergence and endurance of global value chain (GVC) production. The flow of know-how from developed to developing countries often takes place in the context of vertical trade and production chains that cross many borders from raw material to finished product. Taking advantage of that structure is a key determinant of industrial development in the 21st century. Developing countries can now industrialize by joining GVCs instead of building their own value chain from scratch."
Please check the tools for analysis developed by the World Bank:
the concepts of "competitiveness" and "competitive advantage" have many points to discuss. It is Michael Porter who proposed a concept of "competitive advantage"but Paul Krugman and other international trade theorists are opposed to such a proposal and to the possibility of such a concept.
I started to define Porter's concept of "competitive advantage" as a concept of economics. It takes several posts to fully explain my idea. Please read them in the following question page:
How can we reconcile Ricardo's theory of comparative advantages with competitive advantages?
I recommend you to use RSCA instead of RCA. when you use RSCA, you will definitely use RCA with in it. it is easy to understand, interpret, economically significant and meaningful means of measuring export competitiveness.