Data for GDP growth
and inflation (implied GDP deflator), exchange rate changes and nominal
short-term interest rates come from the OECD Economic Outlook database, June
2002. Volatility is measured by the standard deviation across the
2.2 Openness to trade and foreign investment
Trade data are
taken from OECD Monthly International Trade Statistics, June 2002.
Data on foreign
direct investment stocks are taken from UN World Investment Report 2000. A
foreign investment is classified as a direct investment if the foreign investor
holds at least 10 per cent of the ordinary shares or voting rights in an
enterprise and exerts some influence over its management.
are taken from the OECD publication - Purchasing Power Parities and Real
Expenditures 1999 benchmark year.
The source for the
industrial gas and electricity data is the International Energy Agency.
Data used are comparisons of prices in national currency deflated by
national GDP deflators, and exclude taxes, except for US and Canada.
unemployment rates and long-term and youth unemployment rates are taken from
OECD Employment Outlook, June 2001.
2.5 Diversity of employment opportunities
Data used are
National Statistics taken from the Labour Force Survey produced by ONS.
The EU comparison
data are taken from the 2001 European Labour Force Survey compiled by Eurostat.
ELFS data relate to Spring and so potentially may include some seasonal effects
(compared with annual results taken from the UK’s national LFS results) though
these will be less significant when looking at changes over a number of years.
2.6 Industrial action
Data on working
days lost are taken from ONS Labour Market Trends, April 2001. The original
source for the number of days lost was taken from the International Labour
Organisation (ILO) and the employee data from the OECD.
2.7 Labour market regulation
Data for 2.7.1 are
taken from the International Institute for Management Development (IMD) World
Competitiveness Yearbook, 2001. (See notes under 2.8)
asked the question whether labour market regulations are “too restrictive or
flexible enough”. (This question is also included within Chart 2.8.2). In
order to eliminate some of the year-to-year volatility of the surveys, results
presented are the average of 1996 and 1997 surveys and 2000 and 2001 surveys.
Data for 2.7.2 were
taken from the US Bureau of Labor web site, and can be found in their
publication: International Comparisons of hourly compensation costs for
production workers in manufacturing, 1975-2000.
2.8 The institutional and political
The source used was
the IMD World Competitiveness Yearbook, from 1996 to 2001. The IMD surveys the
opinions of a panel of over three thousand top and middle management from 47
countries with a 110-item questionnaire. The survey is completed at around March
of each year. A similar exercise is carried out annually by the World Economic
Forum (The Global Competitiveness Report).
Until 1995 the IMD and WEF produced a joint report, after which WEF set
up their own report with a slightly different compilation methodology.
executive perceptions of how institutions and government policies support
competitiveness two broad sets of indicators were selected. The figures
presented are the simple average of the scores under these headings.
policies the following indicators listed in that publication were chosen: the
deterioration or improvement of the management of public finances; the incentive
effect of real personal taxes; the incentive effect of real corporate taxes; the
extent of tax evasion; the adaptability of government economic policies to a
changing economic environment; the legislative activity of the parliament and
its relation to the nation’s competitive requirements; and transparency - the
government does not communicate its intentions clearly.
those used were: the effect of the legal framework on competitiveness;
the appropriateness of the political system to today’s economic
challenges; the effect of the
customs administration on the efficient transit of goods;
the extent of corruption; public
service and political interference; are
government decisions effectively implemented; is the law fairly administered and
are people and property adequately protected.
executive perceptions of government regulation, the following questions were
used: does environmental regulation hinder business; is labour regulation too
restrictive (the same question used in Chart 2.7.1); the extent of government
price controls; do competition laws prevent unfair competition; bureaucracy and
its effect on business development; and product liability as a constraint on
In order to
eliminate some of the year-to-year volatility of the surveys, results presented
are the average of 1996 and 1997 surveys and 2000 and 2001 surveys.
2.9 Quality of Life
The Government’s Indicators for the Strategy for Sustainable Development in the UK are published by Department for Environment, Food and Rural Affairs (DEFRA). They can found on the internet at:
Last updated on 07 August 2002