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

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.