Analyzing Global Competitiveness Index: Using Binary Logistics Regression

Abstract

In the global competitive era, it is not easy to say the driving factors which make nations to be globally competitive in comparisons with their counterpart, The World Economic Forum, constructed The Global Competitiveness Index, which identifying the key elements of sustainable growth. Since 2001, the forum has been using the Growth Competitiveness Index (Growth CI) developed by Jeffrey Sachs and John McArthur to assess the competitiveness of nations in order to assess the Nation’s level of Competitiveness on global platform. The factors are driving the competitiveness is 1. Basic Requirements 2. Efficiency Enhancers and 3. Innovation and Sophistication factors. The objective of this research work, to analysis the factors that are determining the GCI Score between developing and developed nations. In order to prove statistically, the research-developed model based on Binary Logistical Regression tools, which has got feature of outcome variable, has dichotomous scale. The  article contributes how to use of Binary Logistical Regression where situations demanding. In addition, comparison made between regression and binary logistic regression. The article dealt what is the position of India in the Global Competitive World. However, this research work has got
some limitations in arbitrary fixing the certain variables as categorical variables for model building purposes.