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Measuring Globalization

Author

Listed:
  • Andersen, Torben M.

    () (Aarhus University)

  • Herbertsson, Tryggvi Thor

    () (University of Iceland)

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.

Suggested Citation

  • Andersen, Torben M. & Herbertsson, Tryggvi Thor, 2003. "Measuring Globalization," IZA Discussion Papers 817, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp817
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Francis Breedon & Thórarinn G. Pétursson, 2004. "Out in the cold? Iceland’s trade performance outside the EU," Economics wp26_thorarinn, Department of Economics, Central bank of Iceland.
    2. Peter Herrmann & Almas Heshmati & Arno Tausch & Chemen S.J. Bajalan, 2009. "Efficiency and Effectiveness of Social Spending," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 35(1), pages 13-43.
    3. Fertig, Michael, 2003. "The Impact of Economic Integration on Employment – An Assessment in the Context of EU Enlargement," IZA Discussion Papers 919, Institute of Labor Economics (IZA).
    4. Almas Heshmati & Arno Tausch & Chemen S. J. Bajalan, 2008. "Measurement and Analysis of Child Well-Being in Middle and High Income Countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 5(2), pages 187-249, December.
    5. Baseem Al-Athwari & Jorn Altmann & Almas Heshmati, 2013. "A Conceptual Model and Methodology for Evaluating E-Infrastructure Deployment and Its Application to OECD and MENA Countries," TEMEP Discussion Papers 2013102, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2013.
    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.
    7. Tausch, Arno & Heshmati, Almas, 2014. "Testing an EU-Candidate's Place on the Maps of Global Economic, Political and Social Values: The Case of Turkey," IZA Discussion Papers 8163, Institute of Labor Economics (IZA).
    8. Harry Bowen & Haris Munandar & Jean-Marie Viaene, 2010. "How integrated is the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 389-414, September.
    9. Bjarni G. Einarsson & Gudjón Emilsson & Svava J. Haraldsdóttir & Ólafur Ö. Klemensson & Thórarinn G. Pétursson & Rósa B. Sveinsdóttir, 2013. "The production and export structure of the Icelandic economy. An international comparison," Economics wp60, Department of Economics, Central bank of Iceland.
    10. Heshmati, Almas & Oh, Jong-Eun, 2005. "Alternative Composite Lisbon Development Strategy Indices," IZA Discussion Papers 1734, Institute of Labor Economics (IZA).
    11. Paulo Reis Mourao, 2007. "Has Trade Openness Increased all Portuguese Public Expenditures? A Detailed Time-Series Study," Financial Theory and Practice, Institute of Public Finance, vol. 31(3), pages 225-247.
    12. 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.
    13. 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 Science Publish," MPRA Paper 9613, University Library of Munich, Germany.
    14. Arno Tausch, 2009. "Das EU-Budget und der Lissabon-Prozess," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 107, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    15. Tausch, Arno & Heshmati, Almas & Bajalan, Chemen S. J., 2007. "On the Multivariate Analysis of the "Lisbon Process"," IZA Discussion Papers 3198, Institute of Labor Economics (IZA).
    16. Tausch, Arno & Heshmati, Almas, 2010. "Learning from Latin America's Experience: Europe's Failure in the "Lisbon Process"," IZA Discussion Papers 4779, Institute of Labor Economics (IZA).
    17. Looney, R. & Frederiksen, P. C., 2004. "An assessment of relative globalization in Asia during the 1980s and 1990s," Journal of Asian Economics, Elsevier, vol. 15(2), pages 267-285, April.
    18. Heshmati, Almas, 2004. "The Relationship between Income Inequality, Poverty and Globalisation," IZA Discussion Papers 1277, Institute of Labor Economics (IZA).
    19. Castagna Alina & Furia Donatella & Scamuffa Domenico, 2009. "Eu And Globalization: Some Stylized Facts," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 276-281, May.
    20. Almas Heshmati & Sangchoon Lee, 2010. "The Relationship between Globalization, Economic Growth and Income Inequality," TEMEP Discussion Papers 201051, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
    21. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2009. "Measuring Globalization of International Trade: Theory and Evidence," World Development, Elsevier, vol. 37(1), pages 127-145, January.

    More about this item

    Keywords

    factor analysis; globalization index; OECD;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

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