Market Potential Index (MPI) for Emerging Markets - 2007

December 11, 2006

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/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 - 2007

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 23 59 45 1 3 49 100
2 Hong Kong 1 23 100 54 97 79 75 90 96
3 Singapore 1 27 59 62 83 71 100 100 93
4 Taiwan 5 57 57 999 100 76 23 87 79
5 Israel 1 45 79 82 94 86 26 63 78
6 South Korea 12 30 63 99 90 78 13 65 75
7 Czech Republic 2 48 55 97 91 93 15 63 73
8 Hungary 1 14 76 100 78 83 16 62 64
9 India 44 63 37 77 17 44 1 39 55
10 Poland 5 1 58 80 71 82 7 58 46
11 Turkey 8 55 57 67 51 45 5 27 37
12 Malaysia 3 70 19 42 53 39 30 53 35
13 Russia 34 38 30 53 54 5 4 35 35
14 Mexico 12 9 60 27 48 63 18 52 32
15 Thailand 4 46 44 54 38 49 18 43 31
16 Chile 2 25 44 13 51 100 10 57 26
17 Argentina 5 48 65 39 53 49 2 1 21
18 Saudi Arabia 5 59 1 999 48 15 11 62 18
19 Egypt 4 43 50 70 36 3 5 29 18
20 Pakistan 6 57 62 81 2 10 1 10 15
21 Indonesia 12 45 38 72 1 37 6 13 15
22 Philippines 5 22 60 47 29 42 10 17 14
23 Brazil 25 2 39 13 44 55 2 28 14
24 South Africa 8 28 49 1 22 75 4 44 10
25 Peru 2 20 46 53 23 62 3 19 9
26 Venezuela 4 51 27 52 39 5 6 4 3
27 Colombia 4 20 42 17 41 44 4 20 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 1 3 1 3 3 2 2 2 2 1 1 1 1 1
Hong Kong 2 2 1 3 1 2 1 1 1 1 3 2 2 4 2
China 3 3 2 2 2 1 3 4 5 5 5 6 5 2 3
South Korea 4 4 4 4 5 6 4 3 3 3 2 10 3 9 5
Israel 5 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Czech Republic 6 5 5 5 6 7 7 7 7 7 7 7 7 7 19
Poland 7 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Turkey 8 10 10 12 13 11 15 15 14 14 20 17 18 19 18
India 9 6 9 11 11 9 9 8 9 10 11 8 10 10 10
Chile 10 15 15 13 15 16 14 10 11 9 16 13 14 11 14
Hungary 11 9 8 8 7 8 6 6 6 6 10 11 11 16 15
Malaysia 12 14 14 10 14 12 13 14 13 17 15 16 8 13 7
Russia 13 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Peru 14 16 20 21 25 25 17 21 18 18
Mexico 15 12 13 14 8 14 10 11 10 11 14 15 22 14 9
Indonesia 16 17 12 22 19 21 19 17 16 22 21 23 16 17 21
Brazil 17 11 11 16 23 23 18 20 17 16 18 21 20 22 20
Argentina 18 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Saudi Arabia 19 21 17 15 20 18
Thailand 20 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Egypt 21 20 16 17 21 19 16 16 19 21
Colombia 22 23 25 26 26 27 24 23 24 24
Philippines 23 22 23 23 18 22 20 18 20 19 17 12 15 18 22
Pakistan 24 24 22 20 24 20
Venezuela 25 25 26 24 27 26 23 24 22 23 23 20 23 20 16
South Africa 26 26 24 25 22 24 22 22 21 20 22 22 21 23 17

Dimensions and Measures of Market Potential for 2007

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (million) -20051
  • Electricity consumption (billion kwh) - 20042
Market Growth Rate 6/50
  • Average annual growth rate of commercial energy use (%) - between years 1999-20031
  • Real GDP growth rate (%) - 20051
Market Intensity 7/50
  • GNI per capita estimates using PPP (US Dollars) - 20051
  • Private consumption as a percentage of GDP (%) - 20051
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income (latest year available)1
Commercial Infrastructure 7/50
  • Telephone mainlines (per 100 habitants) - 20053
  • Cellular mobile subscribers (per 100 habitants) - 20053
  • Number of PC's (per 100 habitants) - 20053
  • Paved road density (km per million people) - (latest year available)1
  • Internet hosts (per million people) - 20053
  • Population per retail outlet - 20054
  • Television sets (per 1000 persons) - (latest year available)1
Economic Freedom 5/50
  • Economic Freedom Index - 20065
  • Political Freedom Index - 20066
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 20057
  • Trade as a percentage of GDP (%) - 20051
Country Risk 4/50
  • Country risk rating - 20068
Data used are those available for most recent year.

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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