Uploaded by: Knoema
Accessed On: 28 December, 2017
The Global Opportunity Index answers a pressing need for information that's vital to a thriving global economy like what policies can governments pursue to attract foreign direct investment (FDI), expand their economies, and accelerate job creation, what do multinational companies, other investors, and development agencies need to know before making large-scale, long-term capital commitments.
The GOI considers economic and financial factors that influence investment activities as well as key business, legal and regulatory policies that governments can modify to support and often drive investments. Overall, the GOI tracks countries’ performance on 51 variables aggregated in five categories, each measuring an aspect of the country’s attractiveness for investors.Economic Fundamentals (EF) indicates the current economic strength of a country vis-à-vis the global economic outlook. The assessment focuses on the country’s macro-performance, trade openness, quality and structure of the labor force, and modern infrastructure.Financial Services (FS) measures the size and access to financial services in a country by looking at the country’s financial infrastructure and access to credit.Business Perception (BP) measures explicit and implicit costs associated with business operations such as tax burden, transparency, etc.Institutional Framework (IF) measures the extent to which an individual country’s institutions provide a supportive network to businesses.International Standards and Policy (ISP) reflects the extent to which a country’s institutions, policies, and legal system facilitate international integration by following international standards.
The assigned composite index value is the average score of the five categories (called component scores). Each variable is normalized from 0 to 10. Within each category, the normalized variables are given equal weight and aggregated, resulting in a normalized category score between 0, indicating the least favorable conditions for investment, and 10, signaling the most favorable. The index covers 133 countries. The index methodology is reviewed for each publication to reflect changes in data sources or other relevant adjustments.