IPRI 2016: Cluster Analysis

IV.       IPRI 2016 Country Results

 

This chapter presents the results of the 2016 International Property Rights Index. Starting from the scores of the overall IPRI and its three (3) components, we follow showing countries’ ranking of the IPRI and its components. Variations between 2015 and 2016 of both individual IPRI components and of the overall IPRI score were considered. This chapter also includes an analysis of the IPRI for countries aggrupation.

As an average, the sample of the 128 countries yielded this year an IPRI score of 5.45, with the Legal and Political Environment (LP) being the weakest component with a score of 5.13, followed by the Intellectual Property Rights (IPR) component with a score of 5.33 and Physical Property Rights (PPR) as the strongest component with a score of 5.87. This year we found an overall improvement of the IPRI score compared to 2015, and also of all of its components.

Using SPSS® a normality test was run for IPRI as for its components, showing a Gaussian behavior. The IPRI, LP and IPR showed multimodal distributions, while PPR a unimodal one (see Table 1, Table 2 and Figure 2).

                                                                              

Table 1.Statistics: IPRI and its Components

 

IPRI

LP

PPR

IPR

N

Valid

128

128

128

128

Missing

0

0

0

0

Mean

5.445881

5.130273

5.874578

5.332734

Std. Error of Mean

.1263714

.1610364

.0985457

.1470181

Median

5.091350

4.648500

5.789500

5.085500

Mode

2.7297(a)

3.5820(a)

4.9100

4.3200(a)

Std. Deviation

1.4297296

1.8219192

1.1149174

1.6633194

Variance

2.044

3.319

1.243

2.767

Range

5.6471

7.2530

6.6120

6.9520

Minimum

2.7297

1.7550

1.6000

1.6800

Maximum

8.3768

9.0080

8.2120

8.6320

Percentiles

25

4.472375

3.670000

5.138500

4.209250

50

5.091350

4.648500

5.789500

5.085500

75

6.356600

6.450750

6.759250

6.437000

 

a  Multiple modes exist. The smallest value is shown

 

 

Table 2.Tests of Normality:    One-Sample Kolmogorov-Smirnov Test

 

IPRI

LP

PPR

IPR

N

128

128

128

128

Normal Parameters(a,b)

Mean

5.445881

5.130273

5.874578

5.332734

Std. Deviation

1.4297296

1.8219192

1.1149174

1.6633194

Most Extreme Differences

Absolute

.112

.135

.074

.087

Positive

.112

.135

.074

.083

Negative

-.073

-.072

-.047

-.087

Kolmogorov-Smirnov Z

1.271

1.522

.835

.983

Asymp. Sig. (2-tailed)

.079

.019

.488

.289

 

a  Test distribution is Normal.b  Calculated from data.

 

Figure 2.  IPRI Histogram

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Table 3 shows -alphabetically ordered- the score value of the 128 countries included in the IPRI 2016, as the scores of its components: Legal and Political Environment (LP), Physical Property Rights (PPR) and Intellectual Property Rights (IPR). Figure 3 presents countries organized by its IPRI ranking from top to bottom, showing simultaneously their IPRI scores.

Table 4 shows the IPRI 2016 rankings by quintile for all the 128 countries in our sample. In general, the number of countries belonging to each quintile increases from the top 20% to the bottom 20% (1st quintile 17 countries, 2nd quintile 21 countries, 3rd quintile 25 countries, 4rd quintile 29 countries and 5th quintile 36 countries).  Hence, the forth and the fifth quintiles include 65 countries which is a 50.7% of our sample, while the first three quintiles includes almost the same amount countries, 63, being the 49.2% of the sample.

 

 

Table 3. IPRI 2016. IPRI and its Components Scores by Country

 

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Figure 3. IPRI 2016: Scores and Rankings

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Table 4. IPRI 2016. Rankings by Quintiles

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Figure 4 shows the top 15 countries in this IPRI issue. Finland is #1 in the IPRI overall ranking (8.38), followed by New Zealand (8.27), Luxemburg (8.26), Norway (8.25) and Switzerland (8.16). Interestingly, Scandinavian countries report high IPRI score rankings (Norway #4, Sweden #7 and Denmark #11). Sweden and Japan scores show a difference of just seven ten thousandths (Sweden: 8.0985 Japan: 8.0978) while the difference between Denmark and Australia is of seven thousandths. At the end of this top list we find Hong Kong (7.78), United Kingdom (7.76) and the USA (7.74).

Figure 4. IPRI 2016. Top 15 Countries

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Considering the IPRI components we find that: New Zealand shows the highest LP score (9.01), followed by Finland (8.87) and Norway (8.75); while Qatar (8.21), Singapore (8.16) and Norway heads the PPR scores and USA (8.63), Japan (8.62) and Finland (8.59) the IPR ones.

Most of the top countries show as the stronger IPRI component the LP (though not the case for the UK and USA) while the PPR is less relevant.

Top countries’ positions vary just a little from the previous IPRI edition, but the group of countries remains the same and countries’ scores differ slightly (see Figure 5).

 

 

Figure 5.IPRI 2016 vs IPRI 2015. Top Countries Ranking Change

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The bottom 15 countries are shown in Figure 6. The Bolivarian Rep. of Venezuela is #128 in the IPRI overall ranking (2.73) followed by Myanmar (2.76), Bangladesh (2.77), Haiti (2.84), Zimbabwe (3.40), Burundi (3.44), Nigeria (3.56), Pakistan (3.68), Moldova (3.72) Mauritania (3.73), Chad (3.74), Lebanon (3.83) Madagascar (3.84), Ukraine (3.93) and Nicaragua (3.98).

Considering the IPRI components we find the following: LP bottom countries are: Bolivarian Rep. of Venezuela is #128 (1.76), Chad (2.38), Ukraine (2.43), Nigeria (2.49) and Burundi (2.50). PPR bottom countries are: Haiti (1.6) Bangladesh (2.87), Myanmar (3.752), the Bolivarian Rep. of Venezuela (3.81) and Zimbabwe. And IPR bottom countries are: Myanmar (1.68), Moldova (2.27), Bangladesh (2.39), Georgia (2.45) and the Bolivarian Rep. of Venezuela (2.63).

Most of the bottom countries show PPR as the stronger IPRI (though not the case for Haiti and Bangladesh) with the weakest being LP. This situation is just the opposite of top countries and seems to hint at the ability of LP to pull the rest of components.

 

 

Figure 6. IPRI 2016. Bottom 15 Countries

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A comparison between the IPRI scores in 2016 and 2015 reveals an improvement, not only in the averages of the IPRI scores and of its components but also in the maximum and minimum level showed by the sample of countries (see Figure 7). In 2015 the lowest score was 2.5 (Myanmar), while this year it is 2.73 (Bolivarian Rep. of Venezuela). IPRI 2015 the highest score was 8.32 and this year is 8.38 (in both cases held by Finland). This reveals an improvement of the average IPRI score from 5.3 in 2015 to 5.45 in 2016.

Countries that show the highest improvement in the IPRI are: Cote D’Ivoire (0.509), Lebanon (0.361), Slovenia (0.357), Georgia (0.352) and Honduras (0.337). While the ones with highest decreases in the IPRI scores 2016 are: Oman (-0,172), Hungary (-0.161), Ghana (-0.155), Swaziland (-0.141) and Bolivia (-0.129). It is important to note that the main positive and negative changes were in Europe, Latin America, Africa and the Middle East.

These evaluations were also made of IPRI components:

·       We found an improvement of the average score of the LP component from 4.99 in 2015 to 5.13 in 2016. Changes in the LP component score 2015-2016 are shown in Figure 8. The LP component shows an improvement in most of the countries, with the most significant increases in Cote d’Ivoire (0.695), Georgia (0.547), Kazakhstan (0.4856), Nepal (0.484) and Bangladesh. Most of these countries do not show high levels of the LP component. However, this improvement is encouraging. On the other hand, Ukraine (-0.408), Bolivia (-0.339), Hungary (-0.330), Qatar (-0.2378) and Swaziland (-0.237) show the highest decreases in the LP component.

·       Changes in PPR component score from 2015-2016 are shown in Figure 9. PPR also showed an average improvement rising from 5.77 to 5.87 in 2016. The most significant increases in the PPR component are reported by Slovenia (0.718), Myanmar (0.491, Cote d’Ivoire (0.394), Iran (0.304) and Uganda (0.285), while the highest decreases are shown by Madagascar (-0.279), India (-0,168), Hungary (-0.159), Jordan (-0.145) and Armenia (-0.109).

·       Changes in the IPR component score from 2015-2016 are shown in Figure 10. The IPR component average rose from 5.14 in 2015 to 5.33 for 2016. The most significant increases in the IPR component are reported by Lebanon (0.686), Gabon (0.585), Mali (0.502), Uganda (0.494) and Cote d’Ivoire (0.436); while the countries that showed the most relevant decreases are Oman (-0.369) Swaziland (-0.307), Ghana (-0.1815), Sierra Leone (-0.149) and Mauritania (-0.124).

Figure 7. IPRI Score 2016-2015 and variation [DOWNLOAD FULL PDF TO VIEW THIS CHART]

 

Figure 8. LP Score 2015-2016 and variation

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Figure 9. PPR Score 2015-2016 and variation

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Figure 10. IPR Score 2015-2016 and variation

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Top Ranked Countries


These are the countries where property rights are most secure. For a complete list, click here.

Ranks Country Rating
1 FINLAND 8.4
2 NEW ZEALAND 8.3
3 LUXEMBOURG 8.3
4 NORWAY 8.3
5 SWITZERLAND 8.2
6 SINGAPORE 8.1
7 SWEDEN 8.1
8 JAPAN 8.1
9 NETHERLANDS 8.0
10 CANADA 8.0
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