Slide 1

Instrumental Factors

Instrumental Factors

 

In selecting instrumental factors to compile GGFI, a number of key properties are essential

  • Time series – where possible we will seek data that is contemporary (published within the last three years) is part of a series (collected as part of a programme rather than as a one off) and is on-going (there are plans to update it in the future).
  • Locational relevance – where possible we will seek data at a financial centre level. Where this is not possible we will use appropriate apportionment rules and/or alternative data ie regional.
  • Accessibility – data should be publically accessible, this enables transparency in the assessments. Only in exceptional circumstances- for example where no public data exists for an essential measure, do we purchase data commercially.

Currently the GGFI uses 113 instrumental factors which we have grouped into the following areas:

 

Financial Services- These are statistics on the development of financial service activities, including data on sustainable and green finance; 

Business Environment- These include economics statistics as well as information on legal issues and sustainable policy;

Social Capital- These include data on social and educational development; 

Environment And Infrastructure- These focus on the physical attributes of centres such as air quality and carbon emissions, as well as telecommunications and transport etc.;

 

The rules for the use of this data in our analytical model are as follows:

 

  • updates to the indices are collected and collated every six months;
  • no weightings are applied to indices;
  • indices are entered into the GGFI model as directly as possible, whether this is a rank, a derived score, a value, a distribution around a mean or a distribution around a benchmark;
  • if a factor is at a national level, the score will be used for all centres in that country; nation-based factors will be avoided if financial centre (city)-based factors are available;
  • if an index has multiple values for a city or nation, the most relevant value is used (and the method for judging relevance is noted);
  • if an index is at a regional level, the most relevant allocation of scores to each centre is made (and the method for judging relevance is noted); and
  • if an index does not contain a value for a particular financial centre, a blank is entered against that centre (no average or mean is used).

 

The instrumental factors for the first edition of the GGFI are listed below:

 

Instrumental Factor

Source

Website

Business

Business Environment Rankings

EIU

Website

Ease of Doing Business Index

The World Bank

Website

Operational Risk Rating

EIU

Website

Real Interest Rate

The World Bank

Website

Global Services Location

AT Kearney

Website

Corporate Tax Rates

PWC

Website

Bilateral Tax Information Exchange Agreements

OECD

Website

Government Debt as % of GDP

CIA

Website

Financial Secrecy Index

Tax Justice Network

Website

Common Law Countries

CIA

Website

Best Countries for Business

Forbes

Website

Capitalisation of Stock Exchanges

The World Federation of Stock Exchanges

Website

Value of Share Trading

The World Federation of Stock Exchanges

Website

Volume of Share Trading

The World Federation of Stock Exchanges

Website

Broad Stock Index Levels

The World Federation of Stock Exchanges

Website

Value of Bond Trading

The World Federation of Stock Exchanges

Website

Domestic Credit Provided by Banking Sector (% of GDP)

The World Bank

Website

Percentage of Firms Using Banks to Finance Investment

The World Bank

Website

Total Net Assets of Regulated Open-End Funds

Investment Company Institute

Website

Net External Positions of Banks

The Bank for International Settlements

Website

External Positions of Central Banks as a share of GDP

The Bank for International Settlements

Website

Global Connectedness Index

DHL

Website

City GDP composition (Business/Finance)

The Brookings Institution

Website

Business Process Outsourcing Location Index

Cushman & Wakefield

Website

Office Occupancy Cost

CBRE Research

Website

World Competitiveness Scoreboard

IMD

Website

Foreign Direct Investment Inflows

UNCTAD

Website

FDI Confidence Index

AT Kearney

Website

Global Enabling Trade Report

World Economic Forum

Website

FDI Inward Stock as a Percentage of GDP

UNCTAD

Website

Human Capital

Global Innovation Index

INSEAD

Website

Legatum Prosperity Index

Legatum Institute

Website

Open Government

World Justice Project

Website

Global Intellectual Property Index

Taylor Wessing

Website

Wage Comparison Index

UBS

Website

OECD Country Risk Classification

OECD

Website

Corruption Perception Index

Transparency International

Website

Government Effectiveness

The World Bank

Website

Good Country Index

Good Country Party

Website

Regulatory Quality

The World Bank

Website

World Talent Rankings

IMD

Website

Tax as Percentage of GDP

The World Bank

Website

ICT Development Index

United Nations

Website

Human Freedom Index

Cato Institute

Website

Human Development Index

UN Development Programme

Website

Individual Income Tax Rates

KPMG

Website

Global Peace Index

Institute for Economics & Peace

Website

Political Stability and Absence of Violence/Terrorism

The World Bank

Website

Open Data Barometer

The World Wide Web Foundation

Website

Citizens Domestic Purchasing Power

UBS

Website

Innovation Cities Global Index

2ThinkNow Innovation Cities

Website

Homicide Rates

UN Office of Drugs & Crime

Website

GDP per Person Employed

The World Bank

Website

Visa Restrictions Index

Henley Partners

Website

Press Freedom Index

Reporters Without Borders (RSF)

Website

Global Cities Index

AT Kearney

Website

Number of International Association Meetings

World Economic Forum

Website

Lloyd’s City Risk Index 2015-2025

Lloyd’s

Website

Linguistic Diversity

Ethnologue

Website

Gross Tertiary Graduation Ratio

The World Bank

Website

Personal Tax Rates

OECD

Website

Graduates in social Science, Business and Law (as % of total graduates)

The World Bank

Website

Health Care Index

Numbeo

Website

Cost of Living City Rankings

Mercer

Website

Top Tourism Destinations

Euromonitor

Website

Crime Index

Numbeo

Website

Global Skills Index

Hays

Website

Global Terrorism Index

Institute for Economics & Peace

Website

Prime International Residential Index

Knight Frank

Website

Number of High Net Worth Individuals

Capgemini

Website

Infrastructure

Networked Society City Index

Ericsson

Website

Logistics Performance Index

The World Bank

Website

Railways per Land Area

CIA

Website

Telecommunication Infrastructure Index

United Nations

Website

JLL Real Estate Transparency Index

Jones Lang LaSalle

Website

Networked Readiness Index

World Economic Forum

Website

Roadways per Land Area

CIA

Website

Global Competitiveness Index

World Economic Forum

Website

Liner Shipping Connectivity Index

The World Bank

Website

Quality of Domestic Transport Network

World Economic Forum

Website

Quality of Roads

World Economic Forum

Website

TomTom Trafic Index

TomTom

Website

Metro Network Length

Metro Bits

Website

Crude oil input to refineries

Enerdata Statistical Yearbook

Website

Sustainability

Global Sustainable Competitiveness Index

Solability

Website

Quality of Living City Rankings

Mercer

Website

Sustainable Cities Index

Arcadis

Website

IESE cities in motion index

IESE

Website

Sustainable Economic Development

Boston Consulting Group

Website

Share of wind and solar in electricity production

Enerdata Statistical Yearbook

Website

Environmental Performance

Yale University

Website

Energy Intensity of GDP

Enerdata Statistical Yearbook

Website

City Commitment to Carbon Reduction(Cooperative Action)

UNFCCC

Website

CBI StockExchange(Amount Issued USD)

CBI

Website

Energy Sustainability Index

World Energy Council

Website

Air Quality Data

WHO

Website

Financial institutions clean revenue to fossil-related

Corporate Knights

Provided by Corporate Knights

Financial Institutions Conventional to new Energy Data

Corporate Knights

Provided by Corporate Knights

Protected Land Area % of land area

The World Bank

Website

Quality of Life Index

Numbeo

Website

Share of renewables in electricity production

Enerdata Statistical Yearbook

Website

Financial Centre Sustainability Disclosure

Corporate Knights

Provided by Corporate Knights

Financial centre carbon intensity

Corporate Knights

Provided by Corporate Knights

GRESB Green Real Estate and Infrastructure Investment Score

Corporate Knights

Provided by Corporate Knights

Financial system green alignment

Corporate Knights

Provided by Corporate Knights

Climate-aligned Bonds

Corporate Knights

Provided by Corporate Knights

City Commitment to Carbon Reduction(Individual Action)

UNFCCC

Website

Forestry Area

World Bank

Website

CO2 Emissions Per Capita

World Bank

Website

Green Bond

Corporate Knights

Provided by Corporate Knights

Sustainable Stock Exchanges(Y/N)

UN Sustainable Stock Exchange Initiative

Website

Average precipitation in depth (mm per year)

The World Bank

Website

Buildings Energy Efficiency Policies Database(Y/N)

IEA

Website