| National competitiveness research began in the late1970of the20th century to the early of1980and it is developing rapidly. With the development of economic globalization, the Governments and businesses focus on how to increase national competitiveness to gain a bigger share in the international market mostly. The national competitiveness is based on the industrial competitiveness, with the impact of a state system, cultural, environmental and other relevant factors. At present, in the world, the most famous institutions are the World Economic Forum and the Management School in Lausanne, Switzerland. They formed their own evaluation system. But both of their index systems are based on the model of economic development in the developed countries and can not accurately explain the competitiveness of developing countries. First, on the basis of reviewing on theory of determinants of national competitiveness at home and abroad and its evaluation system and the economic growth theory, a set of indicators on national competitiveness evaluation system is formed. It includes five factors:the government efficiency, industrial factors, scientific and technical innovation, infrastructure construction and social value system. It includes97indicators. These indicators are from WEF and IMD evaluation systems. It also conclude less unalterable indicators.The framework emphasizes to how the five driving factors impact on the foundational competitiveness. We create a system model by using49countries’panel data from2005to2011. We analysis the empirical effect of the elements by the variable nature inspection, the establishment of the simultaneous equations model and the three-stage least squares estimation. We also compare the effect of elements in the different stages of economic development, and thus gained some important inspiration for how to improve our competitiveness. Conclusions are as follows:business and industrial efficiency is the core of competitiveness, technological innovation is the direct driving force to enhance enterprise and industrial efficiency, the interaction effects of infrastructure improvements and competitiveness improving, the level of the legal system is an important factor in the establishment of a harmonious social order, as well as the level of government regulation is still the constraints of economic development in developing country. |