Variables, definitions and sources
| Variable | ID | Description | Source |
|---|---|---|---|
| Gross expenditure on R&D performed by business enterprise | gerd | Calculated as gross expenditure on R&D financed by business enterprise as a proportion of total R&D expenditure | UNESCO |
| Electric power consumption (kWh per capita) | epc | Electric power consumption measures the production of power plants and combined heat and power plants less transmission, distribution and transformation losses and own use by heat and power plants. In this case, the EPC variable is a proxy of GDP per capita | World Bank |
| Exchange rate index. Base year 2010 | exrti | Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs | World Bank |
| Annual inflation rate (%) | irate | Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used | World Bank |
| Domestic credit to private sector (% of GDP) | banks | Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities and trade credits and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises. The financial corporations include monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds and foreign exchange companies | World Bank |
| Market capitalization of listed domestic companies (% of GDP) | mkcap | Market capitalization (also known as market value) is the share price times the number of shares outstanding (including their several classes) for listed domestic companies. Investment funds, unit trusts and companies whose only business goal is to hold shares of other listed companies are excluded. Data are end of year values | World Bank |
| Corporate bond issuance volume to GDP (%) | bonds | Ratio of new corporate bond issuance volume by private entities in industries other than finance, holding companies and insurance to GDP | World Bank |
| Total R&D personnel (full time equivalent) – business enterprise | p_fte | In the context of R&D statistics, the business enterprise sector comprises all resident corporations, including not only legally incorporated enterprises, regardless of the residence of their shareholders. This group includes all other types of quasi-corporations, i.e. units capable of generating a profit or other financial gain for their owners, recognized by law as separate legal entities from their owners and set up for purposes of engaging in market production at prices that are economically significant. The unincorporated branches of non-resident enterprises are deemed to be resident because they are engaged in production on the economic territory on a long-term basis. All resident non-profit institutions are market producers of goods or services or serve business. This sector comprises both private and public enterprises | UNESCO |
| Bank market concentration (%) | conct | Assets of the three largest commercial banks as a share of total commercial banking assets. Total assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax assets, discontinued operations and other assets | World Bank |
| Financial system specialization | fss | Constructed using principal component analysis, starting with a subgroup of variables related to stock markets and a subgroup of variables related to banking systems. For those nations where the two factors (banking and stock markets) were strong, we take the value of zero, meaning that the country has a mixed financial system. For countries in which one of the dimensions were strong, we use the value of one, meaning that there is a specialized financial system (bank or stock-based) (In Appendix 1, we are showing the full methodology to construct this variable) | Own calculations based on World Bank data |
| Variable | ID | Description | Source |
|---|---|---|---|
| Gross expenditure on R&D performed by business enterprise | gerd | Calculated as gross expenditure on R&D financed by business enterprise as a proportion of total R&D expenditure | UNESCO |
| Electric power consumption (kWh per capita) | epc | Electric power consumption measures the production of power plants and combined heat and power plants less transmission, distribution and transformation losses and own use by heat and power plants. In this case, the EPC variable is a proxy of GDP per capita | World Bank |
| Exchange rate index. Base year 2010 | exrti | Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs | World Bank |
| Annual inflation rate (%) | irate | Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used | World Bank |
| Domestic credit to private sector (% of GDP) | banks | Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities and trade credits and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises. The financial corporations include monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds and foreign exchange companies | World Bank |
| Market capitalization of listed domestic companies (% of GDP) | mkcap | Market capitalization (also known as market value) is the share price times the number of shares outstanding (including their several classes) for listed domestic companies. Investment funds, unit trusts and companies whose only business goal is to hold shares of other listed companies are excluded. Data are end of year values | World Bank |
| Corporate bond issuance volume to GDP (%) | bonds | Ratio of new corporate bond issuance volume by private entities in industries other than finance, holding companies and insurance to GDP | World Bank |
| Total R&D personnel (full time equivalent) – business enterprise | p_fte | In the context of R&D statistics, the business enterprise sector comprises all resident corporations, including not only legally incorporated enterprises, regardless of the residence of their shareholders. This group includes all other types of quasi-corporations, i.e. units capable of generating a profit or other financial gain for their owners, recognized by law as separate legal entities from their owners and set up for purposes of engaging in market production at prices that are economically significant. The unincorporated branches of non-resident enterprises are deemed to be resident because they are engaged in production on the economic territory on a long-term basis. All resident non-profit institutions are market producers of goods or services or serve business. This sector comprises both private and public enterprises | UNESCO |
| Bank market concentration (%) | conct | Assets of the three largest commercial banks as a share of total commercial banking assets. Total assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax assets, discontinued operations and other assets | World Bank |
| Financial system specialization | fss | Constructed using principal component analysis, starting with a subgroup of variables related to stock markets and a subgroup of variables related to banking systems. For those nations where the two factors (banking and stock markets) were strong, we take the value of zero, meaning that the country has a mixed financial system. For countries in which one of the dimensions were strong, we use the value of one, meaning that there is a specialized financial system (bank or stock-based) (In | Own calculations based on World Bank data |