Insights #4: Outcomes matter: Do aggregate economic profit outcomes align with established metrics about national business environments?

The economic profit measure developed in the Crux of Capitalism initiative is based solely on reported firm performance. As such it departs from established metrics of the national business environment, parts of which are based on perceptions of national policies and institutional effectiveness. Here we compare across countries and over time to assess where our outcome measure confirms or departures from high-profile, established metrics of the national business environment.