Market Potential Index (MPI) - 2014

May 1, 2014

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

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