Purpose
The purpose of this paper is to set forth a new economic model that includes variables that take account the mediator effect of global competitiveness index to better identify the whole phenomenon behind the relationship between GDP and competition in Europe.
Design/methodology/approach
The authors test the consistency of the Baron and Kenny mediator model through an explanatory linear regression model, then the authors deploy a panel analysis and a simultaneous equation system to assess the model consistency to bypass much of the endogeneity problem.
Findings
This paper’s findings show a positive influence of global competitiveness index on GDP and this effect is by far more evident when other variables (e.g. the logistics performance index) interact simultaneously.
Research limitations/implications
The GCI is a correct variable to assess growth. The study shows how the recent economic crisis has increased the importance of competitiveness for economic recovery as well as key strategic decisions aimed at strengthening growth and competitiveness.
Originality/value
This paper’s theoretical construct is a unique methodology applied to disentangle the role of a new model that takes account of global competitiveness index as a mediator variable to economic growth.
