The top
ten countries in terms of economic efficiency for 2013:
This is
the first in a three part series where we identify the most attractive
international investment opportunities for the next ten years. We start out by
looking at economic efficiency, i.e. the fundamental freedoms and legal
framework, which facilitates successful investing.
In doing
country analysis for international investments, it is often a first step to
look at sovereign bond ratings from Moody's, Fitch or S&P. However, many
smaller developing countries get very little if any play at the agencies. CDS
spreads, another measure of investor risk only covers 80 countries. Our index
covers 127 countries. To do so, we have looked at business and freedom
indexes which assign values to sovereign attributes to gauge risk and assess
opportunity. These indices attempt to measure economic freedom and a legal
clarity.
There
are plenty of indices by many different sources, each one looks at important
factors which could influence returns and hurdle rates. But which index do you
use? We have looked into four of such indices and compiled an index of indices
to measure efficiency.
I have
included information on five of such indices and compiled our own index of
economic efficiency. The indices include:
- Heritage Foundation: Index of Economic Freedom
- Fraser Institute: Economic Freedom of the World
- World Economic Forum: Global Competitiveness Report
- World Bank: Doing Business
- Euromoney Country Risk
Please download our white paper:
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