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New To Frontier Markets?

Check out our resources below to get you up to date on frontier markets and the potential there is!

Mapping Frontier Markets: What Criteria Make Up One?

According to Harvard Business Review, frontier economies are defined as a country possessing one or more of the 3 following characteristics:

1) Faltering Prosperity - The country has not established dependable prosperity for its citizens. Either it has an annual per capital income of less than $1,500 or it has experienced a drop in real GDP per capita of 20% or more in a six-year period over the past two decades or both.

2) Market distortions - The country's industries are primarily driven by market distortions  rather than innovation or competitive differentiation. 

3) Arbitrary Enforcement of Rules and Regulation -  Frontier economies score lower than 3 on the Polity IV "executive constraints" measure, widely used by economists to assess the extent of institutionalized constraints on the decision making power of country leaders.

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What Are Frontier Markets?

A frontier market is a country that is more established than the least developed countries (LDCs) but still less established than the emerging markets because it is too small, carries too much inherent risk, or is too illiquid.

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Are These Investible Markets?

Yes! While they are smaller, less accessible, and somewhat riskier than more established markets, frontier markets are still investable. They are considered desirable by investors looking for substantial long-term returns since these markets have the potential to grow significantly over the course of decades.

Where Are Frontier Markets Located?

As defined by the MSCI