Market Potential Index (MPI) for Emerging Markets - 1998

October 17, 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: /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 - 1998

Overall Rank Country Market SizeMarket Size Market Growth RateMarket Growth Rate Market IntensityMarket Intensity Market Consumption CapacityMarket Consumption Capacity Commercial InfrastructureCommercial Infrastructure Economic FreedomEconomic Freedom Market ReceptivityMarket Receptivity Country RiskCountry Risk Overall ScoreOverall Score
1 Singapore 23 1 1 100 9 60 10 65 2 87 6 67 1 100 1 100 1 100
2 Hong Kong 21 2 9 66 1 100 8 72 5 82 1 100 2 68 4 78 2 90
3 South Korea 6 13 3 86 14 48 6 83 13 24 5 68 6 14 2 83 3 60
4 Israel 20 2 8 70 6 75 1 100 6 75 8 61 4 17 9 61 4 57
5 China 1 100 5 76 23 1 9 69 19 7 23 1 20 5 13 51 5 56
6 Portugal 22 2 15 49 4 76 7 70 3 73 11 9 3 82 6 44
7 Czech Republic 15 4 19 38 13 55 4 90 3 83 2 80 5 16 10 59 7 43
8 Malaysia 16 3 2 89 20 33 13 47 11 31 15 45 3 35 6 76 8 42
9 Greece 17 3 16 48 3 91 1 100 11 60 13 8 11 57 9 41
10 India 3 55 10 64 17 42 7 78 23 1 21 27 21 2 15 40 10 40
11 Hungary 19 2 21 29 10 60 3 98 8 69 7 63 10 10 4 78 11 36
12 Poland 9 10 14 51 15 45 2 99 9 52 13 58 15 7 17 37 12 33
13 Thailand 14 5 4 84 19 34 13 47 21 5 12 59 7 14 8 64 13 32
14 Chile 18 3 7 74 12 58 17 21 15 20 4 72 12 9 7 69 14 31
15 Philippines 13 6 12 59 11 59 11 64 12 27 14 53 8 11 17 37 15 25
16 Indonesia 7 12 6 76 22 25 5 85 22 3 22 24 16 7 12 52 16 23
17 Argentina 11 7 20 34 2 96 10 35 10 60 22 2 19 30 17 19
18 Turkey 10 10 11 61 8 61 16 19 17 37 17 6 21 19 18 13
19 Russia 2 60 23 1 21 32 12 51 4 82 20 32 19 5 23 1 19 12
20 Brazil 4 31 13 56 16 43 19 1 14 23 16 42 23 1 20 30 20 10
21 South Africa 8 12 18 41 18 40 18 13 20 6 9 61 18 6 14 50 21 5
22 Mexico 5 17 22 20 7 66 15 43 18 8 19 34 9 10 16 39 22 2
23 Venezuela 12 6 17 48 5 75 16 32 17 10 18 37 14 8 22 11 23 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 2016 2015 2014 2013 2011 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
China 1 1 1 3 3 2 2 2 1 3 4 5 5 5 6 5 2 3
Hong Kong 2 2 2 2 2 1 3 1 2 1 1 1 1 3 2 2 4 2
Singapore 3 3 5 1 1 3 1 3 3 2 2 2 2 1 1 1 1 1
India 4 4 7 9 6 8 11 11 9 9 8 9 10 11 8 10 10 10
Japan 5 5 3
Canada 6 6 4
Germany 7 7 6
United Kingdom 8 9 9
Qatar 9 8 27
Switzerland 10 10 8
South Korea 11 11 10 4 4 4 4 5 6 4 3 3 3 2 10 3 9 5
United Arab Emirates 12 12 13
Netherlands 13 15 17
France 14 13 11
Belgium 15 16 18
Australia 16 14 12
Norway 17 17 14
Austria 18 19 16
Sweden 19 18 19
Brazil 20 20 20 17 11 11 16 23 23 18 20 17 16 18 21 20 22 20
Poland 21 22 28 7 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Israel 22 25 30 5 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Ireland 23 24 23
Estonia 24 23 56
Turkey 25 31 36 8 10 10 12 13 11 15 15 14 14 20 17 18 19 18
Denmark 26 27 22
Malaysia 27 21 35 12 14 15 10 14 12 13 14 13 17 15 16 8 13 7
Czech Republic 28 39 40 6 5 5 5 6 7 7 7 7 7 7 7 7 7 19
Slovakia 29 33 33
Finland 30 26 26
Saudi Arabia 31 28 37 19 21 17 15 20 18
Lithuania 32 29 34
Indonesia 33 34 39 16 17 14 22 19 21 19 17 16 22 21 23 16 17 21
Italy 34 32 24
Russia 35 37 15 13 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Mexico 36 38 25 15 12 12 14 8 14 10 11 10 11 14 15 22 14 9
New Zealand 37 35 21
Kuwait 38 36 41
Spain 39 30 31
Peru 40 41 51 14 16 20 21 25 25 17 21 18 18
Vietnam 41 42 50
Bahrain 42 47 55
Latvia 43 44 29
Chile 44 40 32 10 15 13 13 15 16 14 10 11 9 16 13 14 11 14
Cambodia 45 45 73
Philippines 46 46 47 23 22 26 23 18 22 20 18 20 19 17 12 15 18 22
Oman 47 48 49
Slovenia 48 43 38
Uruguay 49 49 42
Kazakhstan 50 50 63
Bulgaria 51 55 43
El Salvador 52 52 52
Argentina 53 56 59 18 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Bangladesh 54 57 53
Hungary 55 51 46 11 9 9 8 7 8 6 6 6 6 10 11 11 16 15
Thailand 56 53 45 20 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Romania 57 54 44
Costa Rica 58 58 48
Serbia 59 62 54
Croatia 60 65 58
Portugal 61 64 60 4 3 6 12 11
Pakistan 62 60 66 24 24 23 20 24 20
Egypt 63 59 62 21 20 16 17 21 19 16 16 19 21
Sri Lanka 64 63 71
Nicaragua 65 70 68
Dominican Republic 66 61 64
Cyprus 67 71 65
Paraguay 68 66 80
Tunisia 69 69 57
Colombia 70 67 67 22 23 24 26 26 27 24 23 24 24
Guatemala 71 72 76
Morocco 72 68 61
Ukraine 73 73 69
Honduras 74 81 78
Algeria 75 77 79
Iraq 76 76 81
Belarus 77 79 75
Nigeria 78 74 85
South Africa 79 78 70 26 26 22 25 22 24 22 22 21 20 22 22 21 23 17
Papua New Guinea 80 85 84
Ecuador 81 75 74
Uzbekistan 82 80 83
Venezuela 83 83 77 25 25 25 24 27 26 23 24 22 23 23 20 23 20 16
Azerbaijan 84 84 82
Greece 85 82 72 6 5 9 8 6
Burma 86 87 86
Cuba 87 86 87

Dimensions and Measures of Market Potential for 1998

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (thousands) - 19951
  • Electricity production (million kwh) - 19942
Market Growth Rate 6/50
  • Average annual growth rate of commercial energy use (%) - between years 1980-19952
  • GDP real growth rate (%) - 19953
Market Intensity 7/50
  • GNP per capita estimates using PPP (US Dollars) - 19952
  • Private consumption as a percentage of GDP (%) - 19952
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income2
Commercial Infrastructure 7/50
  • Telephone mainlines (per 1000 persons) - 19922
  • Paved road density (km per million people) - 19953
  • Internet hosts (per million people) - 19974
  • Population per retail outlet - (latest year available)5
  • Television sets (per 1000 persons)2
Economic Freedom 5/50
  • Economic Freedom Index - 19976
  • Survey of political freedom - 19957
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 19959
  • Trade as a percentage of GDP (%) - 19952
Country Risk 4/50
  • Country risk rating - 19978
Data used are those available for most recent year.
  • 1 Source: World Resources Institute 96-97
  • 2 Source: World Bank, World Development Indicators - 1997
  • 3 Source: CIA, World Factbook - 1996
  • 4 Source: Network Wizards (http://www.nw.com/)
  • 5 Source: Euromonitor, European Marketing Data and Statistics- 1997
  • 5 Euromonitor, International Marketing Data and Statistics - 1996
  • 6 Source: Johnson, B.T. and T. Sheehy, The Index of Economic Freedom, The Heritage Foundation - 1997
  • 7 Source: Freedom House (http://www.freedomhouse.org/)
  • 8 Source: Euromoney - March 1997
  • 9 Source: IMF, Direction of Trade Statistics Yearbook - 1996 and CIA, The World 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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