Introduction [Competitiveness strategies for small states]

Abstract

Almost half a century has now passed since economists showed renewed interest into the factors which lead to the success of an economy over the long-term. Solow (1957) pioneered this literature by dissecting economic growth trends into those explained by changes in the use of factor inputs and a residual attributed to total factor productivity growth. Initially ascribed to technological change, total factor productivity growth is nowadays viewed to depend upon the plethora of conditions in an economy, including macroeconomic stability, labour market flexibility, international market integration and research and development activity, amongst other things. These are the issues on which the study of competitiveness revolves.