Your location is: > Resource Desk > Market Potential Index for Emerging Markets - 2008

Market Potential Index

Market Potential Index for Emerging Markets - 2008

March 6, 2008
MPI Archive
2008
2007
2005
2004
2003
2002
2001
2000
1998
1997
1996

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-CIBER 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/resourceDesk/mpi/
  2. The index 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, its "Rank", or its "Index" heading.

MPI for 2008

What's New in 2008: We are using different sources for a few of our indicators, in our efforts to keep the data as current as possible. Worldbank WDI data does not include Taiwan. Therefore, comparable data has been provided with kind assistance from Taipei Economic & Cultural Representative Office (TECRO).

Countries Market Size Market Growth Rate Market Intensity Market Consumption Capacity Commercial Infrastructure Economic Freedom Market Receptivity Country Risk Overall Index
  Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index
Hong Kong 25 1 9 35 1 100 1 100 4 96 2 95 1 100 2 88 1 100
China 1 100 1 100 25 9 20 44 18 41 27 1 17 6 13 47 2 89
Singapore 27 1 2 49 10 53 14 53 5 89 5 80 2 84 1 100 3 76
Taiwan 11 5 20 16 7 58 5 81 1 100 4 80 6 30 3 83 4 62
Korea, South 6 11 24 10 6 61 2 92 2 97 7 75 10 19 6 64 5 59
Czech Rep. 23 1 22 15 15 48 4 82 3 96 3 81 9 20 5 65 6 51
Hungary 26 1 25 4 3 68 3 89 7 83 6 75 8 21 9 60 7 48
Mexico 7 11 16 21 9 54 22 29 15 52 9 64 3 83 12 51 8 45
Israel 24 1 27 1 2 72 9 68 8 78 8 70 4 39 7 63 9 45
Poland 15 4 21 16 12 52 7 72 6 85 11 63 16 8 8 60 10 42
India 2 39 3 46 23 22 13 56 24 26 18 43 25 2 16 40 11 40
Russia 3 27 19 19 22 26 12 59 10 63 26 11 19 6 15 41 12 28
Turkey 9 7 8 37 14 48 15 49 14 53 17 45 20 6 19 28 13 25
Malaysia 20 3 14 23 24 19 18 44 9 67 16 46 5 32 11 52 14 25
Chile 21 2 23 14 18 39 24 9 13 55 1 100 12 13 10 60 15 22
Thailand 17 4 10 34 19 39 16 47 17 48 21 32 11 19 17 39 16 22
Argentina 13 5 6 37 5 61 21 33 11 59 14 49 23 3 26 2 17 19
Philippines 12 5 13 23 4 67 19 44 22 33 19 43 13 13 23 18 18 17
Indonesia 5 12 12 25 20 37 10 63 23 30 20 43 21 4 24 15 19 17
Saudi Arabia 14 4 17 21 27 1 8 69 12 56 24 17 14 9 4 65 20 16
Egypt 16 4 7 37 16 45 11 61 21 35 25 16 18 6 20 28 21 16
South Africa 8 7 11 27 13 49 27 1 25 19 10 64 7 22 14 46 22 14
Brazil 4 22 26 4 21 37 25 8 16 49 13 51 27 1 18 32 23 12
Pakistan 10 6 18 20 8 56 6 73 26 18 22 22 26 1 25 9 24 9
Peru 22 2 4 46 17 39 23 24 27 1 12 57 24 2 22 22 25 5
Colombia 19 3 15 22 11 53 26 3 20 40 15 48 22 4 21 23 26 4
Venezuela 18 3 5 41 26 4 17 47 19 41 23 18 15 8 27 1 27 1

Year to Year Comparison of MPI

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

Dimensions and Measures of Market Potential for 2008

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (million) -20061
  • Electricity consumption (billion kwh) - 20052
Market Growth Rate 6/50
  • Average annual growth rate of primary energy use (%) - between years 2001-20052
  • Real GDP growth rate (%) - 20061
Market Intensity 7/50
  • GNI per capita estimates using PPP (US Dollars) - 20061
  • Private consumption as a percentage of GDP (%) - 20061
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income (latest year available)1
Commercial Infrastructure 7/50
  • Main Telephone lines (per 100 habitants) - 20063
  • Cellular mobile subscribers (per 100 habitants) - 20063
  • Number of PC's (per 1000 habitants) - 20074
  • Paved road density (km per million people) - 20074
  • Internet users (per 100 habitants) - 20063
  • Population per retail outlet - 20074
  • Percentage of Households with TV - 20074
Economic Freedom 5/50
  • Economic Freedom Index - 20075
  • Political Freedom Index - 20076
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 20077
  • Trade as a percentage of GDP (%) - 20061
Country Risk 4/50
  • Country risk rating - 20078
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-CIBER.

Login | or Register FREE for added value!