BRICS, MIST (MIKT) or G5 - Which 'Club' of Economies Has the Biggest Growth Potential?
11 Pages Posted: 21 Dec 2012
Date Written: December 20, 2012
For five years now the financial crisis is not fading. Despite the fact that the effects of the subprime crisis and the public finances crisis in the European Union are unevenly distributed, many emerging markets still has a high rate of growth. On the other hand, most of the developed economies, in the absence of clear prospects for improvement, still experiencing low economic growth, unemployment and public debt growth. There is a lot of concerns about the consumption level, on which depends GDP. These problems only aggravate concerns about the stability of public debt, which level in the developed countries tend to reflect on the carried contemporary economic policy. The main goal of this paper is to present practical application of taxonomy (Multidimensional Comparative Analysis - MCA) to create ranking of developed and developing economies. The study includes an estimate of the value of synthetic indicator which is Euclidean distance from Positive Development Pattern (PDP) of the group of 15 economies (BRICS, MIST, G5) in 2011. As a result, author made a growth potential ranking of economies. Economies was rated by: population, population growth, competitiveness index, 2011 GDP, 2011 GDP per capita, 2011 GPD growth, 2012 GDP growth and Public Debt as % of GDP ratio.
Keywords: Emerging Markets, taxonomy, ranking, BRICS, MIST, G5
JEL Classification: N10, O11, O50
Suggested Citation: Suggested Citation