DISPARITIES REGARDING COMPETITIVENESS, HUMAN CAPITAL AND INCLUSIVE DEVELOPMENT IN THE EU: A CLUSTER ANALYSIS

Abstract

The paper intends to provide evidence regarding the disparities on global competitiveness, human capital and inclusive development across the European Union economies. The values of Global Competitiveness Index, Inclusive Development Index and Global Human Capital Index provided by the 2017-2018 World Economic Forum reports are considered in a cluster analysis. The composition of clusters is mixed as regards the level of economy (developed or developing), geographical position (Western or Eastern and Central Europe) and old/new Member State; countries belonging to a geographical region (i.e. Eastern or Central Europe) or economic group (i.e.developed or emerging countries) are not grouped in the same cluster, emphasizing disparities among European countries at regional/economic group level. It is found also that high differences in accumulation of human capital can coexist with low disparities in inclusiveness or competitiveness and moderate levels of competitiveness and inclusive development can be associated with high level of human capital endowment.

Keywords

• economic competitiveness
• human capital
• inclusive development
• welfare economics
• cluster analysis