• Lorena Škuflić University of Zagreb, Faculty of economics, Department of economic theory, Croatia
  • Sandra Šokčević Libertas International University, Croatia
  • Maja Bašić University of Zagreb, Faculty of economics, Department of economic theory, Croatia


competitiveness, sustainable development, GCI index, SDG index, European Union


Starting from competitiveness as the ability of an entity (company, sector, state) to successfully increase sales on the domestic and/or international market, and through a balance surplus to create growing revenues for its company and/or residents, i.e. the entire country, the concept of competitiveness should be transformed according to today’s business conditions. Competitiveness was initially related to cost, and sales grew due to lower product prices, and later due to productivity and better product quality. Today’s consumer is not only interested in price and quality, but also in environmental sustainability and social responsibility, and customers are looking for sustainable products. This paper investigates the relationship between the Global Competitiveness Index (GCI) and the Sustainable Development Goals (SDG) index on a sample of 27 member states of the European Union in the period 2007-2017, with the main goal and purpose of determining the direction and strength of the relationship and creating a platform for the necessity of redesigning the GCI. The impact of climate change on the GCI was examined by the Sustainable Development Index. For this purpose, Difference GMM was used. The results show that SDG12 (waste generation) hurts competitiveness, while SDG14 (maritime, ocean conservation) has a positive impact on competitiveness. This study contributes to the ongoing discourse on the intersection of competitiveness and sustainability, providing a foundation for future discussions and potential reconstructions of indices that reflect the changing global environment.


Aiginger, K., Bärenthaler-Sieber, S. and Vogel, J. (2013). Competitiveness under New Perspectives. Working paper 44. WIFO, October 2013.

Arellano, M. and Bond, S. (1991). Some tests on specification for panel data: Monte Carlo evidence and an application to Employment Equations. Review of Economic Studies, 58, 277-297.

Arellano, M. and Bover, O. (1995). Another look at the instrumental variable estimation of error-component models, Journal of Econometrics, 68, 29-51.

Bai, B. Y. J. and Perron, P. (1998). Estimating and Testing Linear Models with Multiple Structural Changes. Econometrica, 66(1), 47–78.

Barney, J. B. and Hesterly, W. S. (2015). Strategic management and competitive advantage: concepts and cases. Pearson.

Blundell, R. and Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115-143.

Dzemydaite G., Dzemyda I. and Galiniene B. (2016). The Efficiency of Regional Innovation Systems in New Member States of the European Union: A Nonparametric DEA Approach. Economics and Business, 28 (1), 83–89.

Durand, M., Simon, J. and Webb, C. (1992). OECD’s indicators on trade and international competitiveness. OECD Economics Department Working Papers, 120,

Eggleston H.S., Buendia L., Miwa K., Ngara T. and Tanabe K. (eds). (2006). Guidelines for National Greenhouse Gas Inventories, IPCC. IGS. Japan.


European Commission (2001). Competitiveness of European Manufacturing. DG Enterprise. Brussels.

European Commission (2003). The EU Switch to Green Flagship Initiative.

Eurostat. (2022). Sustainable development in EU: Monitoring report on progress towards the SDGs in

an EU context. EC, May. 2022. Luxemburg. Fagerberg, J. (1988). Industrial Competitiveness. The Economic Journal, 98 (391), 355–374.

Global Sustainable competitiveness index.

Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica: Journal of the econometric society, 1029-1054,

Hausmann, R., and Hidalgo, C. A. (2014). The atlas of economic complexity: Mapping paths to prosperity. MIT Press.

Kaplinsky, R. (2020). Global value chains and development: Redefining the contours of 21st century capitalism. Cambridge University Press.

Kaufmann, D., Aart K. and Mastruzzi, M. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues. World Bank Policy Research Working Paper No. 5430

Krugman, P. (1994). Competitiveness: A Dangerous Obsession. Foreign Affairs. 73(2), 28–44,

Krugman, P. (1994B), The fight over competitiveness: A zero sum debate: Response: Proving my point. Foreign Affairs, 73(4). 198-203.

Krugman, P. (1996). Making Sense of the Competitiveness Debate, International Competitiveness. Oxford Review of Economic Policy. 12 ( 3), 17–25.

Kuzmak, O., Kuzmak O. (2023). Social Responsibility of Business towards Sustainable Development: Case of Ukraine. Collection of Papers New Economy, 1(1), 126-148.

Lane, P. (1998). World trade survey: Why trade is good for you?, The Economist, Special Issue, 3rd October.

Leko-Šimić, M. (1999). Međunarodna konkurentnost hrvatskog gospodarstva u okruženju tranzicijskih zemalja srednje i istočne Europe . Market – Tržište, 11 ( 10).

Lin, K. Y. and Wei, S. H. (2023). Advancing the Industrial Circular Economy: The Integrative Role of Machine Learning in Resource Optimization. Journal of Green Economy and Low-Carbon Development, 2(3), 122-136.

Lovrinčević, Ž., Mikulić, D., Rajh, E. (2008). Comparison of Methodologies for measuring National Competitiveness – Competitive Position of Croatian Economy. Ekonomski pregled-Economic Review, 59(11),603–645. measuring_national_competitiveness_-_Competitive_position_of_croatian_economy

Maravilhas, S, and Oliviera, S, G. (2018). Information Strategy: Implementing and Managing a Digital Strategy in a Portuguese Company in Jamil, G.E. 2018, Handbook of Research on Expanding Business Opportunities With Information Systems and Analytics; IGI Global

Markides, C. C. and Williamson, P. J. (2018). Corporate strategy: A resource-based approach. Routledge.

Mastilo, Z., Štilić, A., Gligović, D., Puška, A. (2024). Assessing the Banking Sector of Bosnia and Herzegovina: An Analysis of Financial Indicators through the MEREC and MARCOS Methods. Journal of Central Banking Theory and Practice, 13(1), 167-197.

Mbarek M.B. and all. (2016). How Effective Are Renewable Energy in Addition of Economic Growth and Curbing CO2 Emissions in the Long Run? A Panel Data Analysis for Four Mediterranean Countries. Journal of the Knowledge Economy,9, 754-7366.

OECD Proceedings (1998). The Competitiveness of transition economies. Paris. WIFO i OECD OECD (2011). OECD Guidelines for Multinational Enterprises.

Porter, M. (1990). The Competitive Advantage of Nations. The Free Press A Division of Macmillan Inc.. New York.

Roodman D. (2009). How To Do xtabond2: An Introduction to “Difference” and “System” GMM in Stata. The Stata Journal, 9(1), 86-136.

Sala-i-Martin, X. (2018). The global competitiveness index 2018. World Economic Forum. Sohag, K., Bamanga, U., and Alam, M. M. (2018). Stata command for time series analysis.

Stepanenko, S., Kryukova, I., Khalin, S., Podsokha, A. (2023). Inclusive Investment in the Sustainable Development of the Agricultural Sector and Rural Areas of Ukraine. Collection of Papers New Economy, 1(1), 75-88.

Sustainable Development Goals Index (2023).

Šegota, A., Tomljanović, M. and Huđek, I. (2017), Contemporary approaches to measuring competitiveness – the case of EU member states. Zbornik radova Ekonomski fakultet Rijeka. Rijeka, 35 (1) 123-150.

Škuflić, L. (2005). Uzroci trgovinskog deficita Republike Hrvatske i mogućnosti njegova smanjivanja. Ekonomski vjesnik. Osijek. 18 (1 I 2), 45 – 58.

Teece, D. J. (2014). A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45(1), 8-37.

Velloso, J.P.R. (1991). International competitiveness and creation of an enabling environment. In Haque, I. (ed) International competitiveness: Interaction of public and private sectors, Washington D.C.: The World Bank.

UN General Assembly. (1987). Report of the world commission on environment and development: Our common future. Oslo. United Nations General Assembly, Development and International Co-operation -Environment.

UN (2015), Sustainable Development Goals and Climate Action,

UN (2023a). Climate Change. UN (2023b). Climate Action. www. UN (1992) UNFCCC – United Nations Framework Convention on Climate Change,


World Bank (2023). World Bank Open Data.

WEF (2020). Global Competitiveness Report 2020–21. New York. Oxford University Press. WEF (2017). The Global Comretitiveness Report 2016-2017.




How to Cite