Abstract and Keywords
This article describes how policymakers and governments came to understand the role of institutions in shaping the growth trajectory of nations and later to act as if nations compete on the basis of their economic, political, and cultural institutions. It covers the period from the 1970s onwards. The article describes how the concept of international competitiveness has been redefined and advanced to become a discourse, using literature from economic theory and business analysis to do so. It is in this context that the concept of institutional competitiveness (CIC) is introduced as a particular understanding of what makes national economies competitive. Finally, the article emphasizes how state–society relations have been changed. The concept of ‘Competitive Arrangements’ is engaged with other related concepts. In conclusion, the CIC is defined and presented as a present understanding of international competitiveness among national governments and others.
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