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Countrymetrics and economic performance evaluation of countries.A systemic approach

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Abstract

The crisis of international markets following recent events such as the terrorist attacks, the wars in the East, the growing financial globalisation and integration have raised an interest in the analysis of country risk. Facing such a turbulent situation of the markets (Emery and Trist, 1965), uncertain for nations and international investors alike, it is extremely important to provide an evaluation of country risk with a basis that must be as objective as possible in relation to industrialised countries as well as to emerging nations (Cruces et al., 2002). National transparency and good government are important prerequisites in order to access international financial markets. In relation to the growing relevance of such issues, this study shall try to measure and evaluate the risk of the country system by means of a new systemic approach. In particular, we shall attempt to calculate a magnitude that can act as an indicator of economic stability and growth prospects as well as of the risk of economic-financial crashes (complement). Moreover, we shall try to elaborate a quality-quantity scale along which countries can be placed according to their performance; this scale can also become an indicator of the nations’ economic stability and country risk. The application is based on 51 countries for the 2000-2002 period. Some concluding remarks and macroeconomics implications conclude the research.

Suggested Citation

  • Mario Coccia, 2004. "Countrymetrics and economic performance evaluation of countries.A systemic approach," CERIS Working Paper 200413, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:200413
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    More about this item

    Keywords

    Countries risk evaluation; Economic performance; Comparative studies of countries; Economic growth; Systemic approach;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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