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Conduits of Capital

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Global City Competitiveness<br />

EIU<br />

http://www.economistinsights.com/<br />

countries-trade-investment/analysis/hotspots/<br />

R2 = 0.368 City Based Public Sector Influence = High Private Sector Influence = Low<br />

This index assesses 120 urban agglomerations around the world, comprising around 29% <strong>of</strong> the world’s economy. Cities are rated on the basis <strong>of</strong><br />

their demonstrated ability to attract capital, businesses, talent and visitors.’ It is made up <strong>of</strong> 21 qualitative and 10 quantitative indicators grouped into<br />

eight categories: Institutional Effectiveness; Physical <strong>Capital</strong>; Global Appeal; Human <strong>Capital</strong>; Financial Maturity; Economic Strength; Environment &<br />

Natural Hazards and Social & Cultural Character.<br />

http://www.weforum.org/en/initiatives/gcp/<br />

Global Competitiveness Index<br />

World Economic Forum<br />

Global%20Competitiveness%20Report/<br />

index.htm<br />

R 2 = 0.295 Country Based Public Sector Influence = Low Private Sector Influence = Low<br />

This index is derived from a combination <strong>of</strong> publicly available hard data and the results <strong>of</strong> the Executive Opinion Survey and ranks 144 countries,<br />

according to 12 broad indicators that the WEF refers to as the 12 pillars <strong>of</strong> competitiveness: Institutions; Infrastructure; Macroeconomic environment;<br />

Health and primary education; Higher education and training; Goods market efficiency; Labour market efficiency; Financial market sophistication;<br />

Technological readiness; Market size; Business sophistication and Innovation. The weightings on the pillars differ in accordance to a country’s stage<br />

<strong>of</strong> development.<br />

Global Enabling Trade Report<br />

World Economic Forum<br />

http://www.weforum.org/issues/<br />

international-trade<br />

R2 = 0.165 Country Based Public Sector Influence = High Private Sector Influence = Low<br />

This index ranks 132 economies and measures the extent to which they have developed the institutions, policies, and services that facilitate free flow<br />

<strong>of</strong> goods over borders and to destination. The structure <strong>of</strong> this index comprises four sub-indices: Market access sub-index measures the extent to<br />

which the policy framework <strong>of</strong> a country welcomes foreign goods and enables access to foreign markets for its exporters. The border administration<br />

sub-index gauges the extent to which the administration at the border facilitates the entry and exit <strong>of</strong> goods. The transport and communications<br />

infrastructure sub-index assesses the country’s transport and communications infrastructure. The business environment sub-index looks at the quality<br />

<strong>of</strong> governance and the overarching regulatory and security environment impacting the business <strong>of</strong> importers and exporters.<br />

Global Innovation Index<br />

INSEAD / WIPO<br />

http://www.globalinnovationindex.org/<br />

content.aspx?page=GII-Home<br />

R 2 = 0.090 Country Based Public Sector Influence = High Private Sector Influence = Medium<br />

This index gauges the innovation friendliness <strong>of</strong> 142 economies, which account for 99% <strong>of</strong> the world’s Gross Domestic Product. It is constructed <strong>of</strong> two<br />

sub-indices, the Innovation Input Sub-Index and the Innovation Output Sub-Index, each built around composite measures (or pillars).<br />

Innovation Input is constructed <strong>of</strong> five pillars: Institutions; Human <strong>Capital</strong>, Infrastructure; Market sophistication and Business.<br />

Innovation Output assesses consists <strong>of</strong> two pillars: Scientific outputs and Creative outputs.<br />

Innovation Cities Global Index 2thinknow Innovation Cities Project http://www.innovation-cities.com/<br />

R2 = 0.198 City Based Public Sector Influence = Low Private Sector Influence = Low<br />

This index uses 162 data points for each city, combined into 31 broader industry and community segments. Each <strong>of</strong> these segments is determined<br />

as a sector <strong>of</strong> an urban economy and thus a driver <strong>of</strong> jobs, community and economic activity. These are not however distinct economic sectors (e.g.,<br />

like retail, automobile or telecommunication) but broader, more comprehensive measures that attempt to encompass every aspect <strong>of</strong> everyday life:<br />

Government & politics, Business, Logistics, Industry & manufacturing, Sports & fitness, Geography, Arts, Utilities, Environment, Fashion, Health,<br />

Education, etc.<br />

http://www.weforum.org/en/initiatives/<br />

Number <strong>of</strong> International Fairs and Exhibitions<br />

World Economic Forum<br />

gcp/TravelandTourismReport/<br />

CompetitivenessIndex/index.htm<br />

R 2 = 0.165 Country Based Public Sector Influence = High Private Sector Influence = High<br />

This measures the fairs and exhibitions that were held within a country annually by taking the average for the period 2007-2009. It is a useful measure<br />

<strong>of</strong> a country’s overall attractiveness and flow <strong>of</strong> (mainly) business travellers. A higher number <strong>of</strong> international events Has a ‘spill-over’ effect to the overall<br />

attractiveness and international image <strong>of</strong> a city. International events also justify investment in a city’s development because they require adequate<br />

infrastructure which has a beneficial effect on every aspect <strong>of</strong> a city’s life.<br />

<strong>Conduits</strong> <strong>of</strong> <strong>Capital</strong> – Onshore Financial Centres and Their Relevance to African Private Equity<br />

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