Post by account_disabled on Dec 6, 2023 11:20:17 GMT
The main potential of emerging markets is technological resources and capabilities. The determining factor in the development of technology is human capital. In most emerging countries, the population is very young, and B2B Email List consequently, the labor market is determined by young and creative personnel. In addition, these countries have a high capacity for skilled labor.
The systematic development of education, computerization and digitization of systems and scientific research institutes has contributed to a significant increase in intellectual capacity in emerging markets. One indicator for assessing technological capabilities is the number of patent applications filed. World Bank data shows that most emerging markets rank first in the number of patents. The leading country in this regard is China, where the number of applications filed has been steadily increasing since 2011. Another positive aspect is the increase in foreign investment, which has been visible in emerging markets since the beginning of the 21st century.
However, it is important to remember before making investment decisions that economic growth in emerging countries is never steady and is more like a roller coaster. When buying stocks after an upward trend, one should expect that they may fall short. Therefore, sometimes it is worthwhile to invest in a stock market that is not in the best shape, with the prospect of a reversal of the negative trend.