Northern Ireland needs to increase its employment and productivity rates and reduce the size of its public sector if it is to increase competitiveness.
A British government sponsored review, written by Sir David Varney, follows his report on taxation policy in Northern Ireland following the restoration of devolution last year.
That concluded that the British government should not allow Northern Ireland a reduced rate of corporation tax in order to compete with the Republic.
In today's review, Mr Varney indicates that Northern Ireland's strengths include a young population, an excellent education system and strong transport links.
However, he recommends several reforms to further boost competitiveness.
Recommendations include the transfer of many public sector services to the private sector and greater co-operation with the Irish Government and agencies like the IDA in the development of an all-island economy.
The review comes ahead of next week's Northern Ireland and US investment conference.
Today at Westminster new DUP leader Peter Robinson asked British Prime Minister Gordon Brown to publish the British government's response to the Varney competitiveness review before that conference got under way.
Mr Robinson also called on Gordon Brown to relinquish control of unused military and police bases so Northern Ireland Executive could increase its asset base.
