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Measuring Globalization

  • Andersen, Torben M.


    (Aarhus University)

  • Herbertsson, Tryggvi Thor


    (University of Iceland)

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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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:
Publication status: published as 'Quantifying Globalization' in: Applied Economics, 37 (10), 2005, 1089 - 1098
Handle: RePEc:iza:izadps:dp817
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References listed on IDEAS
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  1. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
  2. Agell, Jonas, 1998. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Working Paper Series 1998:17, Uppsala University, Department of Economics.
  3. repec:rus:hseeco:121595 is not listed on IDEAS
  4. Robert E. Baldwin, 2003. "Openness and Growth: What's the Empirical Relationship?," NBER Working Papers 9578, National Bureau of Economic Research, Inc.
  5. Torben M. Andersen, 2003. "European integration and the welfare state," Journal of Population Economics, Springer, vol. 16(1), pages 1-19, 02.
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