Literature review of industrial competitiveness index: Research gap

The dynamic of the manufacturing industries is still the dominating drive in a nation1 economic development. To develop a national manufacturing industries systematically, one needs to measure the country's special capability and develops comprehensive plans and policies that enable the government to exploit the country's economic potential. This qualitative study based on literature investigates and compares various competitiveness indices relate to industrial sector and their measurement methods. On national level, this paper reviews Global Competitive Index (GCI) and World Competitiveness Yearbook (WCY). On sector level, Competitiveness Industrial Performance (CIP) and The Global Manufacturing Competitiveness Index (GMCI) have been the objects of research. Despite of these indices and their benefits for measuring performance in industrial sector, however, this paper still argues that there should be a method that measures not only the country's potential capabilities but also its anticipated potential economic risks. Then, the paper shows the possibility to alter the method by incorporating the measurement of various risk scenarios in the future. By using the alternative method, one can hope to be able to measure the impacts of any possible economics shocks toward manufacturing industries performance. Finally, the results should also reflect the capabilities of manufacturing industries to survive in any economic shocks, and aid policy makers in developing effective policy for the industry.