E Competitive markets
                                                    2.2 Openness to trade and foreign investment

Why is it significant?

Competition from abroad is a spur to efficiency and the diffusion of new technology and innovation, which in turn drive productivity growth. 

How does the UK perform? 

The UK is a relatively open economy, whether judged by trade or foreign direct investment in volume terms or as a proportion of GDP (charts 2.2.1 to 2.2.4).


Last updated on 20 November 2003