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Theoretical and Applied Economics
No. 9 / 2006 (504)

Competitive Advantaje Anatomy: from Methodological Holism to State Capture

Cosmin Marinescu
Academia de Studii Economice Bucuresti

Abstract. According to the orthodox theory of international trade, the argument of selective industrial policy means the state capability of identifying competitive advantages and to exploit them. In this approach, I want to emphasize the necessity of a critical reconsideration of the “competitive advantage” and “national competitiveness”, and also of the implications deriving from these concepts over public policy. First of all, I analyzed the scientifically basis of competitiveness: on the free market, the competitive advantage is given by the entrepreneurial ability, which so becomes the real source of the economic success. Being given any other conditions, meaning here a market affected by state’s interventionism, reaching “competitive advantages” derives from rent-seeking activities which attend to capture public policy.

Keywords: competitive advantage; methodological holism; state capture.

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