THE BETWEEN-COUNTRY INEQUALITY: DOES IT HINDER THE COMPETITIVENESS?

2012

Nowadays the competitiveness is the significant premise to enhance the inhabitants well being. From this perspective on competitiveness has been given great attention in the literature and competitiveness hindrances have been studied as well. However the link between inequality and competitiveness is less studied, particular in case of the European Union. Thereby the author attempts to clarify the role of the between-country income inequality in hindering the competitiveness.The data analysis shows that lower income countries have less ability towards strengthening the nation economy competitiveness thereby reducing overall European Union competitiveness level. Obviously the country's compe…