In the past few years, the concept of competitiveness developed by the World Economic Forum has become the focal point. Global competitiveness index (GCI) presents the constructs which are possible means of productivity of the country. The purpose of this study is to explore whether boosting the productivity of agriculture, services and industry sector is the possible channel of competitiveness leading to growth.
For this, panel GMM moderator model has been used for 16 low-income countries.
The results indicate that competitiveness helps agriculture and industry sector to become more growth productive, while it reduces the productivity of services sector.
This study urges that the gains from following the competition promotion policies overweigh the costs. Hence, low-income countries can break the low productivity trap.
