POLICY BRIEF – No. 02/2023 - The Economic Dividend of Competitiveness

Summary

The economic modelling estimates the relationship between changes in reforms of the policy recommendations as set out in the competitiveness compass and changes in competitiveness. [...] 2.1 Selection of Variables Measuring Progress in the Policy Recommendations The first step of the methodology is to select the indicators that measure progress in the policy recommendations. [...] However, the scenarios for the STRI and the DSTRI are applied to the services and the digital services sectors respectively. [...] In the CGE modelling exercise, this process leads to a reallocation of resources – capital and labour – from the least to the most productive sectors which increases the overall competitiveness in the EU. [...] Quite the contrary: increasing competitiveness in the EU is a policy that leads to higher levels of prosperity in the EU and the world.