The Grand Duchy leads the field as the most attractive country for family businesses

The country has moved up two places, to the top of the ranking established by the Centre for European Economic Research (ZEW) for 2016.

04-attractiviteThe German Centre for European Economic Research (ZEW) has just published the sixth edition of its composite index (Länder-Index) on behalf of the Stiftung Familienunternehmen foundation.

The index, with scores from 0 to 100, is published every two years. It measures the attractiveness of countries as an investment site for family businesses with annual turnover of more than 100 million euros.

The results are based on six criteria: taxation, labour/productivity/human capital costs, regulatory framework, financing capacity, infrastructures/institutions, and energy.

The Grand Duchy takes first place in this list of 18 OECD countries. This represents an upward move of two places compared with the previous edition, with a score of 65.39/100! An excellent performance, particularly noticeable in the following three areas:

  • infrastructures and institutions, with a score of 85.41/100 and first place in the ranking for this sub-index;
  • energy, with a score of 75/100 and again in first place in the overall ranking for this sub-index;
  • labour/productivity/human capital costs, for which criterion the Grand Duchy again takes first place, with a score of 62.68/100.

It should however be noted that the country's performances reported in this study are perhaps overvalued in certain sub-indexes since the Grand Duchy's cross-border workers (who represent 45% of the total workforce) are not taken into account. 


(Article written by the editorial team of the portal - Source: press release from the Observatory for Competitiveness)  

  • Updated 20-01-2017