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Market Potential Index

Market Potential Index for Emerging Markets - 2000

January 21, 2000
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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. You are currently viewing an old version of the MPI. 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 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 2000

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
Singapore 23 1 1 100 8 67 - - 3 88 7 80 1 100 1 100 1 100
Hong Kong 21 1 16 56 1 100 - - 7 65 3 92 2 66 3 76 2 76
Portugal 22 1 5 84 4 84 - - 4 75 2 93 11 10 2 90 3 62
Israel 20 1 7 76 2 87 5 84 6 66 11 76 4 25 5 71 4 60
Greece 18 2 9 72 3 86 - - 2 90 12 73 18 6 4 71 5 52
China 1 100 2 95 23 1 7 68 20 8 23 1 20 5 21 21 6 51
Czech Rep. 16 3 21 22 19 39 3 91 1 100 1 100 5 20 8 64 7 49
India 3 48 6 81 17 45 4 88 23 1 20 48 23 1 14 51 8 47
Poland 8 9 17 55 11 55 1 100 9 52 10 78 13 9 9 64 9 47
Korea, South 7 13 12 68 12 55 - - 10 43 5 86 9 16 7 66 10 45
Hungary 19 2 19 52 14 51 2 91 5 67 8 79 10 15 11 60 11 43
Philippines 12 6 15 62 10 59 8 57 13 25 14 71 7 17 13 54 12 30
Chile 17 2 3 91 7 72 14 16 16 15 4 86 12 9 6 70 13 30
Argentina 11 7 11 70 5 82 - - 11 29 13 72 21 3 17 43 14 30
Mexico 5 19 10 70 9 66 13 27 18 14 17 50 6 18 15 45 15 26
Malaysia 15 4 8 74 22 13 11 43 15 22 16 53 3 35 10 60 16 20
Turkey 9 9 4 86 13 54 - - 14 25 18 48 15 8 18 32 17 20
Thailand 14 4 13 66 21 24 11 43 21 8 6 80 8 16 12 55 18 16
Russia 2 50 23 1 20 24 10 50 8 55 22 37 19 6 23 1 19 16
Venezuela 13 5 20 50 6 76 9 53 19 9 15 55 16 7 19 30 20 14
Brazil 4 23 14 62 16 50 15 5 12 25 19 48 22 2 20 28 21 9
South Africa 10 8 18 53 15 50 16 1 17 14 8 79 17 7 16 45 22 8
Indonesia 6 16 22 14 18 44 6 69 22 2 21 39 14 8 22 19 23 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
Singapore 3 3 2 2 2 2 1 1 1 1
Hong Kong 1 2 1 1 1 1 3 2 2 4
Portugal 4 3 6 12
Israel 9 5 5 5 4 4 8 4 4 5
Greece 6 5 9 8
China 2 1 3 4 5 5 5 6 5 2
Czech Rep. 6 7 7 7 7 7 7 7 7 7
India 11 9 9 8 9 10 11 8 10 10
Poland 10 10 8 9 8 8 9 9 12 6
Korea, South 5 6 4 3 3 3 2 10 3 9
Hungary 7 8 6 6 6 6 10 11 11 16
Philippines 18 22 20 18 20 19 17 12 15 18
Chile 15 16 14 10 11 9 16 13 14 11
Argentina 17 17 21 19 23 15 13 14 17 3
Mexico 8 14 10 11 10 11 14 15 22 14
Malaysia 14 12 13 14 13 17 15 16 8 13
Turkey 13 11 15 15 14 14 20 17 18 19
Thailand 16 15 12 13 12 12 12 18 13 15
Russia 12 13 11 12 15 13 19 19 19 21
Venezuela 27 26 23 24 22 23 23 20 23 20
Brazil 23 23 18 20 17 16 18 21 20 22
South Africa 22 24 22 22 21 20 22 22 21 23
Indonesia 19 21 19 17 16 22 21 23 16 17

Dimensions and Measures of Market Potential for 2000

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (million) - 19981,2
  • Electricity consumption (billion kwh) - 19982
Market Growth Rate 6/50
  • Average annual growth rate of commercial energy use (%) - between years 1980-19963
  • GDP real growth rate (%) - 19982
Market Intensity 7/50
  • GNP per capita estimates using PPP (US Dollars) - 19981
  • Private consumption as a percentage of GDP (%) - 19981
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income (latest year available)3
Commercial Infrastructure 7/50
  • Telephone mainlines (per 100 habitants) - 1997-19984
  • Paved road density (km per million people) - 19985
  • Internet hosts (per million people) - 19986
  • Population per retail outlet - (latest year available)7
  • Television sets (per 1000 persons) - 19973
Economic Freedom 5/50
  • Economic Freedom Index - 19988
  • Political Freedom Index - 1998-19999
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 19975,10
  • Trade as a percentage of GDP (%) - 19991
Country Risk 4/50
  • Country risk rating - 199911
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.


For additional inquiries, please contact MSU-CIBER.

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