Can we improve competitiveness at any cost?

Dialogues économiques
DECEMBER 8, 2020
What is the common feature between global imbalances, the Crédit d’Impôt pour la Compétitivité et l’Emploi (CICE), and Donald Trump's tweets against China? Competitiveness! This concept has been at the heart of political discourse since the European debt crisis in 2010, leading to much scrutiny of its performance and praise of its growth. So, when it comes to reforms aimed at increasing competitiveness, economists Lise Patureau and Céline Poilly point out the importance of considering the impact of corporate markup.
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