The Country Gradient (C-2) is the Deterministic Component of the ACV Index, meaning that the measurement criteria pertain to principal factors particular to country outcomes.
Dynamic analysis indicates that the Country Gradient is ‘extrinsic’ and ‘integrated’ to underline the open economy interdependencies of the sovereign state. Accordingly, the idiosyncratic combination of principal factors imparts the long-run qualitative country experience.
The formula for C-2 is calculated using the global index of World Government (WGI) and the Economic Freedom of the World Index (EFWI) as follows.
C2 = {(WGI + (EFWI-WGI))/2} simplified,
C2 = [ Quality of Government ] + [ Country Dynamism ]
Country Gradient Statistical Analysis
Country Gradient Rankings