MSU-CIBER Releases the 2007 EMPI Index: China, Hong Kong, and Singapore are most attractive emerging markets

Michigan State University's Center for International Business Education and Research (MSU-CIBER) in the Eli Broad College of Business has just released its annual market potential index for emerging markets (EMPI), available at http://globaledge.msu.edu/resourceDesk/mpi.asp.

The 2007 update of the EMPI features China, Hong Kong, and Singapore at the top of the most attractive emerging markets list. Hong Kong, which held the top spot from 2002-2005 fell to second this year as China climbed to first after finishing third in 2005. Singapore fell one notch from second to third, and Taiwan, previously excluded from the study for a lack of data, entered as the fourth most attractive market in its first year on the list.

South American countries occupy the bottom three spots, and four of the bottom five. Peru was ranked 17th in last year's study, but dropped to 25th this year. In doing so, it joins Venezuela and Colombia at the bottom of the list. Brazil also fell in 2007, from 18th to 23rd.

The index, which has been published annually by MSU-CIBER since 1995, uses a number of market growth indicators to determine the attractiveness of emerging markets. The factors include market size, market growth rate, market intensity, market consumption, commercial infrastructure, economic freedom, market receptivity, and country risk. This year's list of emerging markets grew from 24 to 27 with the additions of Pakistan and Saudi Arabia, along with Taiwan.

The on-line, interactive rankings allow users to rank emerging markets on the basis of any of the eight dimensions comprising the overall index, thus allowing for extensive customization. According to the study leader Dr. S. Tamer Cavusgil, "As long as market entry is important, and as long as companies must therefore have a reliable source of data for choosing which markets to enter, companies will find value in our EMPI index."

Emerging markets are some of the fastest growing economies in the world and represent countries that are experiencing a substantial economic transformation. Such economies are home to approximately 80 percent of the world's population; their tremendous economic expansion has fueled much of the recent wave of globalization.

Organizations interested in customizing the EMPI can contact Tomas Hult, Director of the MSU-CIBER at 517-353-4336 or hult@msu.edu.