itiveness has been regarded as one of the most critical issues for a country
to enhance economic development and attract foreign investments. Though
the issue of national competitiveness has been discussed extensively in the
literature, there is still no standard and satisfactory model for its measurement.
For example, the measurement models developed by IMD (Institute
for Management Development), WEF (World Economic Forum) and WCR
(World Competitiveness Report) have been recognized as most widely accepted
models. However, the methodological and analytical approaches of
these models have suffered from some problems [5] [7]. Porter’s diamond
model seems to be comparatively more effective as it measures national
competitiveness by analyzing the integration of different industries. However,
it has been contended that in Porter’s model the causal relations
between independent and dependent variables are not very clear, and many
non-linear or controversial relationships are excluded or left unexplored
(Lall [5]). In addition, it has been contended that previous studies tend to
evaluate national competitiveness only from the perspective of developed
countries, with developing countries given only scant attention (Doryan [3]).
Thus a measurement model for the competitiveness of the developing countries
may be essential.
Based on the above points, the purposes of this study are, firstly, to build
a measurement model of national competitiveness and, secondly, to evaluate
the overall national competitiveness of Laos using that model. The result of
this study will provide recommendations and suggestions for government
and business sectors to strength their national competitiveness.