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From exports point of view, competitiveness concept is a very restricted approach. Competitiveness is a reflection of microeconomic decisions, socio-political problems and public welfare and it must also potentially be able to help countries achieve a sustainable value added creation. Due to this reason, most studies on this issue consider competitiveness in terms of efficiency and labor productivity. This paper uses competitiveness indexes and competitiveness factor of international management development to examine the country's competitiveness power such as knowledge based competitiveness, education, technology and information infrastructures, innovation and economic and institutional performances. The results indicate that a quadratic form explains the relationship between competitiveness and human capital. It confirms that the average years of schooling has a positive effect on labor productivity. Moreover, technology and information infrastructures (ICT), defined as the ratio of ICT expenditures over GDP, has a positive effect on labor productivity. Government size and the degree of openness have a negative effect on competitiveness. Economic and institutional performances have a positive effect on competitiveness, the more freedom of speech, the higher the competitiveness power.

Keywords: Competitiveness, Knowledge Based Economy, Labor Productivity

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