An entropy-weighted index of national competitiveness in Latin America: structural insights and policy lessons

Purpose This study introduces a region-specific, entropy-weighted index to evaluate national competitiveness across ten Latin American countries from 1995 to 2020. It aims to identify structural disparities and offer context-sensitive guidance for policy reform. Design/methodology/approach The proposed index integrates 25 indicators across five key dimensions: economic performance, labor market efficiency, financial development, information and communication technology infrastructure and human capital. Entropy analysis is used to determine objective weights based on variability and information content. Countries are grouped into three performance tiers. Findings The results reveal marked disparities in competitiveness levels across the region. Countries such as Chile and Mexico lead in institutional and educational performance, while others, including Venezuela and Bolivia, face persistent structural and macroeconomic constraints. Research limitations/implications Data limitations in fragile economies remain a constraint. Future research should include risk and sustainability dimensions for a more holistic view. Practical implications This entropy-based composite index provides a diagnostic tool for benchmarking competitiveness and designing tailored national reform agendas. Originality/value The study advances the literature by offering a replicable, fully objective competitiveness index tailored to Latin American structural realities – moving beyond perception-based global rankings.