ABSTRACT
This study analyses the bilateral relations between the human development and competitiveness. Data envelopment analysis (DEA) with windows analysis is employed to calculate efficiencies of countries on converting their human development to competitiveness and competitiveness to human development. Then a stepwise cluster analysis for time periods are used to analyze the results of the DEA models. Fifty-six countries are evaluated for the years 2010–2017 based on the data of Global Competitiveness Index and Human Development Index. We find that the competitiveness of a country has a positive impact on its the human development with a three-year time lag. However, there is no direct effect of the human development on the competitiveness. Furthermore, we ranked the countries with respect to DEA and cluster analysis results that incorporated their human development and competitiveness levels.
