chapter  1
Competitiveness, investment and finance: analytical links
Pages 8

International competitiveness generally refers to the ability of a country to expand its share in world markets. It is well known that most of the developing countries export mainly primary commodities (agricultural products and minerals), which have been facing a long-run decline in prices in the world market (this is the Prebisch-Singer thesis; see Sarkar and Singer 1991; Bleaney and Greenaway 1993; Sapsford and Chen 1998 for recent evidence). Thus, it is being increasingly recognised both among academicians and policy-makers that the capacity of a country to increase its standard of living in the long term depends on the competitiveness of the manufacturing sector (Singh and Howes 2000; Fanelli and Medhora 2002).