Market Potential Index (MPI) - 2014

May 1, 2014

About the Index

Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The purpose of this study is to rank, with a U.S. focus, the market potential of 87 identified countries and to provide guidance to the U.S. companies that plan to expand their markets internationally. While the U.S. is not included in the rankings, the insights provided by the index are still applicable to companies located in other international markets.

This indexing study is conducted by the Michigan State University-International Business Center to help companies compare prospect markets on several dimensions. Eight dimensions are chosen to represent the market potential of a country on a scale of 1 to 100. The dimensions are measured using various indicators, and are weighted in determining their contribution to the overall Market Potential Index (MPI).

Since 1996, the MPI has been calculated for 26 countries identified as "Emerging Markets" by The Economist magazine. However, in order to cover a wider range of markets, a decision has been made to increase the number of countries to 87.

Please see the bottom of the page, or click the following link for the changes in effect as of 2014. Changes for 2014

View MPI Table

View MPI Table

Market Potential Index (MPI) - 2014

Overall Rank Country Market Size Market Growth Rate Market Intensity Market Consumption Capacity Commercial Infrastructure Economic Freedom Market Receptivity Country Risk Overall Score
1 China 100 100 4 97 55 22 8 79 100
2 Hong Kong 1 62 100 30 96 100 100 95 56
3 Japan 20 48 76 100 80 69 8 90 54
4 Canada 9 54 79 62 89 76 64 90 53
5 Singapore 1 75 76 33 82 69 89 100 49
6 Germany 11 47 78 84 93 70 17 82 47
7 India 37 76 36 56 14 46 8 64 46
8 Switzerland 2 51 94 48 88 78 35 90 41
9 United Kingdom 8 42 84 68 92 71 14 74 41
10 South Korea 9 66 59 59 78 63 21 82 41
11 France 10 46 72 72 94 61 11 74 40
12 Australia 5 58 74 59 96 78 13 82 40
13 United Arab Emirates 2 91 66 36 88 42 42 74 38
14 Norway 2 62 83 49 82 68 15 90 36
15 Russia 18 71 40 51 80 27 8 64 36
16 Austria 2 51 76 50 96 69 18 82 35
17 Netherlands 3 40 62 53 83 71 40 74 35
18 Belgium 2 50 69 44 79 67 42 74 35
19 Sweden 3 51 67 52 89 70 16 90 35
20 Brazil 17 62 48 41 57 50 5 69 33
21 New Zealand 1 62 66 40 87 77 13 82 33
22 Denmark 1 39 68 54 93 73 17 82 32
23 Ireland 1 40 55 42 100 73 36 74 32
24 Italy 7 33 72 65 74 59 10 59 31
25 Mexico 10 62 61 38 40 54 22 69 31
26 Finland 2 40 71 49 86 70 14 82 31
27 Qatar 1 79 59 30 73 45 30 79 30
28 Poland 4 57 58 47 69 64 14 74 30
29 Latvia 1 64 61 41 98 61 19 59 30
30 Israel 2 66 59 40 70 63 21 66 30
31 Spain 6 35 68 56 78 64 11 59 30
32 Chile 2 84 60 18 55 75 16 79 30
33 Slovakia 1 53 57 47 68 64 25 74 29
34 Lithuania 1 40 65 37 99 70 24 74 29
35 Malaysia 3 79 34 30 65 51 25 84 29
36 Turkey 6 64 68 47 52 49 9 53 28
37 Saudi Arabia 5 89 20 36 84 29 16 74 27
38 Slovenia 1 36 60 44 98 60 21 67 27
39 Indonesia 11 82 31 41 27 46 7 64 27
40 Czech Republic 2 41 47 48 74 69 22 67 27
41 Kuwait 1 87 39 30 70 39 18 84 27
42 Uruguay 1 75 62 28 61 66 11 58 26
43 Bulgaria 1 47 56 49 67 58 19 59 26
44 Romania 2 55 50 51 65 58 11 59 25
45 Thailand 4 83 35 36 43 45 22 58 25
46 Hungary 1 37 60 44 66 62 26 51 24
47 Philippines 4 79 57 31 25 48 10 69 24
48 Costa Rica 1 69 53 20 55 64 21 64 24
49 Oman 1 79 32 30 67 41 16 79 24
50 Vietnam 3 87 40 39 46 23 22 43 23
51 Peru 2 87 43 28 23 57 9 69 23
52 El Salvador 1 58 87 25 46 56 14 53 23
53 Bangladesh 4 87 58 40 14 39 8 33 21
54 Serbia 1 44 60 46 66 52 13 38 21
55 Bahrain 1 67 21 30 79 46 23 59 21
56 Estonia 1 1 47 39 93 72 27 74 21
57 Tunisia 1 66 59 40 38 45 15 42 21
58 Croatia 1 43 55 39 76 56 13 48 21
59 Argentina 4 82 44 36 60 38 7 17 21
60 Portugal 1 30 69 38 71 61 12 51 21
61 Morocco 2 81 36 31 44 38 13 64 21
62 Egypt 4 71 69 43 42 28 7 22 21
63 Kazakhstan 2 64 27 46 72 38 11 48 21
64 Dominican Republic 1 68 79 25 30 51 13 43 20
65 Cyprus 1 40 79 30 69 65 13 26 20
66 Pakistan 6 66 67 43 33 35 5 12 20
67 Colombia 3 67 45 16 42 55 8 64 19
68 Nicaragua 1 69 70 32 24 43 16 22 18
69 Ukraine 4 37 56 50 66 35 16 1 18
70 South Africa 5 61 46 1 59 55 9 58 18
71 Sri Lanka 1 75 52 35 37 40 9 33 18
72 Greece 2 14 82 46 75 49 9 26 17
73 Cambodia 1 72 66 34 33 32 16 17 17
74 Ecuador 1 80 44 23 45 36 12 27 16
75 Belarus 1 54 29 49 78 20 22 6 16
76 Guatemala 1 62 75 13 31 46 11 43 16
77 Venezuela 3 75 45 35 55 15 10 6 15
78 Honduras 1 63 62 15 29 40 21 33 15
79 Algeria 3 69 1 41 38 26 10 64 14
80 Paraguay 1 47 57 20 36 49 15 43 14
81 Iraq 2 89 12 43 27 25 12 6 14
82 Azerbaijan 1 54 12 39 56 33 12 38 12
83 Uzbekistan 2 73 30 37 43 14 8 17 12
84 Papua New Guinea 1 65 21 17 9 42 18 43 9
85 Nigeria 6 55 15 25 4 34 11 27 8
86 Burma 2 88 30 1 22 1 6 8
87 Cuba 1 64 27 11 1 6 1 1

View Year to Year Comparison

View MPI Year to Year Comparison

Year to Year Comparison (Some of the countries don't have ranking before 2014 because those countries were added to MPI in 2014)

Country 2014 2013 2011 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
China 1 3 3 2 2 2 1 3 4 5 5 5 6 5 2 3
Hong Kong 2 2 2 1 3 1 2 1 1 1 1 3 2 2 4 2
Japan 3
Canada 4
Singapore 5 1 1 3 1 3 3 2 2 2 2 1 1 1 1 1
Germany 6
India 7 9 6 8 11 11 9 9 8 9 10 11 8 10 10 10
Switzerland 8
United Kingdom 9
South Korea 10 4 4 4 4 5 6 4 3 3 3 2 10 3 9 5
France 11
Australia 12
United Arab Emirates 13
Norway 14
Russia 15 13 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Austria 16
Netherlands 17
Belgium 18
Sweden 19
Brazil 20 17 11 11 16 23 23 18 20 17 16 18 21 20 22 20
New Zealand 21
Denmark 22
Ireland 23
Italy 24
Mexico 25 15 12 12 14 8 14 10 11 10 11 14 15 22 14 9
Finland 26
Qatar 27
Poland 28 7 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Latvia 29
Israel 30 5 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Spain 31
Chile 32 10 15 13 13 15 16 14 10 11 9 16 13 14 11 14
Slovakia 33
Lithuania 34
Malaysia 35 12 14 15 10 14 12 13 14 13 17 15 16 8 13 7
Turkey 36 8 10 10 12 13 11 15 15 14 14 20 17 18 19 18
Saudi Arabia 37 19 21 17 15 20 18
Slovenia 38
Indonesia 39 16 17 14 22 19 21 19 17 16 22 21 23 16 17 21
Czech Republic 40 6 5 5 5 6 7 7 7 7 7 7 7 7 7 19
Kuwait 41
Uruguay 42
Bulgaria 43
Romania 44
Thailand 45 20 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Hungary 46 11 9 9 8 7 8 6 6 6 6 10 11 11 16 15
Philippines 47 23 22 26 23 18 22 20 18 20 19 17 12 15 18 22
Costa Rica 48
Oman 49
Vietnam 50
Peru 51 14 16 20 21 25 25 17 21 18 18
El Salvador 52
Bangladesh 53
Serbia 54
Bahrain 55
Estonia 56
Tunisia 57
Croatia 58
Argentina 59 18 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Portugal 60 4 3 6 12 11
Morocco 61
Egypt 62 21 20 16 17 21 19 16 16 19 21
Kazakhstan 63
Dominican Republic 64
Cyprus 65
Pakistan 66 24 24 23 20 24 20
Colombia 67 22 23 24 26 26 27 24 23 24 24
Nicaragua 68
Ukraine 69
South Africa 70 26 26 22 25 22 24 22 22 21 20 22 22 21 23 17
Sri Lanka 71
Greece 72 6 5 9 8 6
Cambodia 73
Ecuador 74
Belarus 75
Guatemala 76
Venezuela 77 25 25 25 24 27 26 23 24 22 23 23 20 23 20 16
Honduras 78
Algeria 79
Paraguay 80
Iraq 81
Azerbaijan 82
Uzbekistan 83
Papua New Guinea 84
Nigeria 85
Burma 86
Cuba 87

Dimensions and Measures of Market Potential for 2014

Dimension Weight Measures Used
Market Size 25/100
  • Electricity Consumption (2011)1
  • Urban Population (2012)1
Market Intensity 15/100
  • GNI per Capita Estimates Using PPP (2012)1
  • Private Consumption as a percentage of GDP (2012)1
Market Growth Rate 12.5/100
  • Average Annual Growth Rate of Primary Energy Use
    (Between years 2007-2012)2
  • Real GDP Growth Rate (2012)1
Market Consumption Capacity 12.5/100
  • Consumer Expenditure (2013)4
  • Income Share of Middle-Class (2011)1
Commercial Infrastructure 10/100
  • Cellular Mobile Subscribers (2012)3
  • Households with Internet Access (2012)3
  • Main Telephone Lines (2012)3
  • Number of PC's (2012)4
  • Paved Road Density (2013)4
  • Population per Retail Outlet (2013)4
  • Percentage of Households with Color TV (2013)4
Market Receptivity 10/100
  • Per Capita Imports from US (2013)7
  • Trade as a Percentage of GDP (2012)1
Economic Freedom 7.5/100
  • Economic Freedom Index (2014)5
  • Political Freedom Index (2013)6
Country Risk 7.5/100
  • Business Risk Rating (2014)8
  • Country Risk Rating (2013)9
  • Political Risk Rating (2014)10
Data used are those available for most recent year. All sources were accessed in April 2014.

Changes as of 2014

As of 2014, the MPI is going to be calculated for those 87 countries which have been selected according to the following criteria:

  • Countries that are in the top 100 performers in terms of Total GDP
  • Countries with a population of one million or more.
  • Countries for which reliable data is available for the majority of the indicators used.

Also, the weighting of the dimensions used to calculate the index has been changed as follows:

Dimension Until 2014 After 2014
Market Size 20.00 25.00
Market Intensity 14.00 15.00
Market Growth Rate 12.00 12.50
Market Consumption Capacity 10.00 12.50
Commercial Infrastructure 14.00 10.00
Market Receptivity 12.00 10.00
Economic Freedom 10.00 7.50
Country Risk 8.00 7.50
TOTAL 100.00 100.00

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.

Glossary