As developing countries have started to open up their economies, concern about competitiveness has spread to their policy makers. Their relative competitiveness as production and investment sites has become a prime focus of development policy. They are, moreover, faced with a world in which the main determinants of competitiveness are changing rapidly. Competition has intensified because of rapidly falling transport and communications costs, and the performance of economies, industries and firms is constantly compared and benchmarked across nations. So are determinants of...