The idea of national competitiveness has enjoyed a remarkable rise to prominence in both the theoretical and applied social science literature over the last decade. While lively debate has accompanied that journey, thereby helping to advance our thinking while clarifying areas of agreement and disagreement, much still remains to be done. In general, competitiveness is defined as a collection of factors, policies and institutions which determine the level of productivity of a country. It is assumed that it determines the level of prosperity which can be attained by an economy. Based on this idea, this paper attempts to identify the factors affecting national competitiveness and to analyse the causal relationships among them, using the path analysis. For the analysis, it utilizes the global competitiveness index published by WEF(World Economic Forum). The analysis shows that National competitiveness is a function of efficiency of legal framework, level of social capital, level of education, degree of economic freedom, government efficiency and innovation factors of enterprise. It can be interpreted to mean that the two variables, the efficiency of legal framework and innovation factors of enterprise, were the most powerful determinants of national competitiveness.