Report
Patrick Artus

How can a country’s attractiveness be measured?

To measure a country’s attractiveness, we can look at : Either the supposed determinants of attractiveness (taxation, labour market regulations, labour costs, education, quality of infrastructure), which is what institutions that produce rankings on attractiveness do . This approach is debatable, as it is often tinged with an ideological bias (a low tax burden is positive, etc. ); Or variables that reflect attractiveness: direct investment, industrial production capacity, export market shares, job creation. If we look at the situation of the seven largest OECD countries and try to assess the change in their attractiveness in the recent period by using: The first criterion (a priori determinants of attractiveness), the descending order of attractiveness is: United States, Japan, United Kingdom, Spain, France, Germany, Italy. The second criterion (visible effects of attractiveness), the descending order of attractiveness is: Germany, United States, Spain, Japan, France, United Kingdom, Italy. We can see that observed attractiveness is much stronger than theoretical attractiveness for Germany, and much weaker for the United Kingdom and Japan.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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