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Measuring Globalization

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Author Info
Andersen, Torben M. () (University of Aarhus, CEPR, EPRU and IZA Bonn)
Herbertsson, Tryggvi Thor (University of Iceland)

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Abstract

The multivariate technique of factor analysis is used to combine several indicators of economic integration and international transactions into a single measure or index of globalization. The index is an alternative to the simple measure of openness based on trade, and it produces a ranking of countries over time for 23 OECD countries. Ireland is ranked as the most globalized country during the 1990’s, while the UK was at the top during the 1980’s. Some of the most notable changes in the rankings are the decline of the US, Canada, and to a lesser extent Japan. Norway also receives a lower ranking. There are notable improvements in the ranking for Finland, Italy, Portugal, Spain and Sweden. For Portugal and Spain the changes seem to follow EU membership in the mid 1980’s.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 817.

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Length: 21 pages
Date of creation: Jul 2003
Date of revision:
Handle: RePEc:iza:izadps:dp817

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Related research
Keywords: globalization index; factor analysis; OECD;

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Agell, Jonas, 1999. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Economic Journal, Royal Economic Society, vol. 109(453), pages F143-64, February. [Downloadable!] (restricted)
  2. Torben M. Andersen, 2003. "European integration and the welfare state," Journal of Population Economics, Springer, vol. 16(1), pages 1-19, 02. [Downloadable!] (restricted)
  3. repec:rus:hseeco:121595 is not listed on IDEAS
  4. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October. [Downloadable!] (restricted)
    Other versions:
  5. Robert E. Baldwin, 2003. "Openness and Growth: What's the Empirical Relationship?," NBER Working Papers 9578, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael Fertig, 2003. "The Impact of Economic Integration on Employment – An Assessment in the Context of EU-Enlargement," RWI Discussion Papers 0007, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
  2. Arno Tausch & Almas Heshmati & Chemen S.J. Bajalan, 2007. "On the Multivariate Analysis of the "Lisbon Process"," IZA Discussion Papers 3198, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Almas Heshmati & Chemen S.J. Bajalan & Arno Tausch, 2007. "Measurement and Analysis of Child Well-Being in Middle and High Income Countries," IZA Discussion Papers 3203, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Jong-Eun Oh & Almas Heshmati, 2005. "Alternative Composite Lisbon Development Strategy Indices," IZA Discussion Papers 1734, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany. [Downloadable!]
  6. Tausch, Arno, 2009. "Schaufenster Griechenland – was kann aus dem aktuellen Debakel für das soziale Europa gelernt werden?
    [Showcase Greece – what can be learnt from the current debacle for a Social Europe?]]
    ," MPRA Paper 14251, University Library of Munich, Germany. [Downloadable!]
  7. TAUSCH, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Scien," MPRA Paper 9613, University Library of Munich, Germany. [Downloadable!]
  8. Harry P. Bowen & Haris Munandar & Jean-Marie Viaene, 2009. "How Integrated Is The World Economy?," Discussion Paper Series 2009-03, McColl School of Business, Queens University of Charlotte. [Downloadable!]
  9. Fertig, Michael, 2003. "The Impact of Economic Integration on Employment – An Assessment in the Context of EU Enlargement," IZA Discussion Papers 919, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Herrmann, Peter & Tausch, Arno & Heshmati, Almas & Bajalan, Chemen S. J., 2008. "Efficiency and Effectiveness of Social Spending," IZA Discussion Papers 3482, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Heshmati, Almas, 2004. "The Relationship between Income Inequality, Poverty and Globalisation," IZA Discussion Papers 1277, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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