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Market Potential Index (MPI) for Emerging Markets - 1997

March 25, 1997

You are currently viewing an old version of the Market Potential Index (MPI).

Global marketing is becoming more and more important along the years with the increasing trend in internationalization. Having too many choices, marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The focus of this study is ranking the market potential of countries identified as "Emerging Markets" by The Economist magazine. These emerging economies comprise more than half of the world's population, account for a large share of world output, and have very high growth rates; all indicators of enormous market potential.

This indexing study is conducted by MSU-IBC to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.

Notes:
  1. The most recent version of the Market Potential Index can always be found on globalEDGE at: http://globalEDGE.msu.edu/knowledge-tools/mpi/
  2. The report for previous years can be reached through the Market Potential Index (MPI) Archive table on the right column.
  3. To sort by any dimension, click on the name of the dimension.

View MPI Table

View MPI Table

Market Potential Index (MPI) for Emerging Markets - 1997

Overall Rank Country Market Size Market Growth Rate Market Intensity Market Consumption Capacity Commercial Infrastructure Economic Freedom Market Receptivity Country Risk Overall Score
1 Singapore 1 50 74 65 52 98 100 100
2 China 100 100 1 78 34 1 34 79
3 Argentina 4 47 100 30 46 60 76
4 Hong Kong 1 47 72 61 100 61 74
5 Israel 1 87 100 35 40 37 61
6 Poland 4 13 53 99 31 26 79 58
7 Czech Republic 2 55 90 57 69 29 55
8 Greece 2 1 92 50 38 33 46
9 South Korea 4 37 52 83 31 53 30 45
10 India 76 23 43 77 6 5 12 43
11 Chile 2 44 65 21 17 61 41 43
12 Portugal 2 83 46 48 9 40
13 Malaysia 2 55 44 47 9 48 43 40
14 Mexico 8 19 70 43 31 18 44 39
15 Thailand 6 61 42 47 4 59 34 39
16 Hungary 2 1 70 98 30 36 29 37
17 Indonesia 17 55 39 84 1 38 17 35
18 Philippines 6 11 55 64 23 40 29 30
19 Turkey 6 28 55 19 40 20 28
20 Venezuela 3 27 77 32 20 9 22 25
21 Russia 13 23 51 100 7 1 20
22 Brazil 14 11 47 1 37 18 32 19
23 South Africa 4 1 42 13 18 32 13 1

View Year to Year Comparison

View MPI Year to Year Comparison

Year to Year Comparison

Country 2013 2011 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
Singapore 1 3 1 3 3 2 2 2 2 1 1 1 1 1
Hong Kong 2 1 3 1 2 1 1 1 1 3 2 2 4 2
China 3 2 2 2 1 3 4 5 5 5 6 5 2 3
South Korea 4 4 4 5 6 4 3 3 3 2 10 3 9 5
Czech Republic 5 5 5 6 7 7 7 7 7 7 7 7 7 19
India 6 9 11 11 9 9 8 9 10 11 8 10 10 10
Israel 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Poland 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Hungary 9 8 8 7 8 6 6 6 6 10 11 11 16 15
Turkey 10 10 12 13 11 15 15 14 14 20 17 18 19 18
Brazil 11 11 16 23 23 18 20 17 16 18 21 20 22 20
Mexico 12 13 14 8 14 10 11 10 11 14 15 22 14 9
Argentina 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Malaysia 14 14 10 14 12 13 14 13 17 15 16 8 13 7
Chile 15 15 13 15 16 14 10 11 9 16 13 14 11 14
Peru 16 20 21 25 25 17 21 18 18
Indonesia 17 12 22 19 21 19 17 16 22 21 23 16 17 21
Thailand 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Russia 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Egypt 20 16 17 21 19 16 16 19 21
Saudi Arabia 21 17 15 20 18
Philippines 22 23 23 18 22 20 18 20 19 17 12 15 18 22
Colombia 23 25 26 26 27 24 23 24 24
Pakistan 24 22 20 24 20
Venezuela 25 26 24 27 26 23 24 22 23 23 20 23 20 16
South Africa 26 24 25 22 24 22 22 21 20 22 22 21 23 17

Dimensions and Measures of Market Potential for 1997

Dimension Weight Measures Used
Market Size 4/20
  • International estimates of population(millions)-mid 1994s1
Market Growth Rate 3/20
  • Average annual growth rate(%)-between years 1990-19942
Market Intensity 3/20
  • Purchasing Power Parity (PPP) estimates of GNP per capita (US=100)-19942
  • Private consumption as a percentage of GDP(%)2
Market Consumption Capacity 2/20
  • Percentage share of middle-calss in consumption/income2
    Note: Middle-class=second quantile+third quantile+fourth quantile
Commercial Infrastructure 2/20
  • Telephone mainlines (per 1000 habitants) - 19922
  • Electric production (kwh per person)-19922
  • Commerical vehicles in use(`000)-19931
  • Population per retail outlet - (latest year available)1
  • Percentages of homes with TV(%)1
Economic Freedom 2/20
  • Economic Freedom Index - 19973
Market Receptivity 4/20
  • Average annual growth rate of imports from US(%) between years 1990-19954
  • Per capita imports from US(US Dollars)-19955
    Note: The 1995 imports figure is divided by the mid-1995's population figure.
Data used are those available for most recent year.
  • 1 Source:Euromonitor, European Marketing Data and Statistics - 1997 and Euromonitor, International Marketing data and Statistics- 1996
  • 2 Source: World Bank, World Development Report - 1996
  • 3 Source: Johnson, B.T. and T.Sheehy, The Index of Economic Freedim, The Heritage Foundation - 1997
  • 4 Source: IMF, Direction of Trade Statistics Yearbook - 1996
  • 5 Source: IMF, Direction of Trade Statistics Yearbook - 1996 and CIA Wordl Fact Book

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer Cavusgil,
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91: doi.

"Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country Clustering and Country Ranking" - S. Tamer Cavusgil, Tunga Kiyak, and Sengun Yeniyurt
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi.

For additional inquiries, please contact MSU-IBC.

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