Development economists over the ages have puzzled about why some emerging economies perform much better than others over the long term. We have been looking at the same issue in our latest research, and find one element that others haven’t tended to focus on: the often intense competitive dynamics that can be found in the best performing emerging economies—a competitive mindset that has spawned a new generation of productive and battle-hardened companies that aspire to be global champions.
The Best-Performing Emerging Economies Emphasize Competition
According to data from 71 countries.
September 17, 2018
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Summary.
Development economists over the ages have puzzled about why some emerging economies perform much better than others over the long term. Researchers looked at 71 emerging economies and identified 18 that achieved rapid and consistent GDP growth over the past 50 and 20 years. They include the usual Asian suspects—China, South Korea, and Singapore—but also less obvious countries including Ethiopia and Vietnam. The firms in those countries seem to compete more intensively, and innovate more aggressively, suggesting that domestic competition brings results not just for the firms that survive it, but also for the economy as a whole.