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In this regard, it is important to note the following: 1) some argue that competitiveness focuses on short-term gains, whereas economic growth requires long-term investments
In this regard, it is important to note the following: 1) some argue that competitiveness focuses on short-term gains, whereas economic growth requires long-term investments (innovation, education, and infrastructure), so policies that encourage competitiveness may boost productivity in the short term but may not lead to sustainable economic growth in the long term; 2) competitiveness can divert resources from other areas (social assistance, environmental protection, and public goods), and this can limit the resources available for investments that promote economic growth (education, research and development, as well as infrastructure); 3) competitiveness can have distributive effects, which means that benefits may not be shared equally among different groups in society, which can have negative effects on economic growth; and d) if a country's competitiveness is too high, it may not be able to attract foreign investment, and there may be a tradeoff between policies that promote domestic competitiveness and policies aiming at trade balance and forgoing protectionism, and that tradeoff would have a negative impact on global economic growth
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