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How Global is Globalization?

Author

Listed:
  • Jac C. Heckelman

    (Wake Forest University)

  • Andrew T. Young

    (West Virginia University, College of Business and Economics)

Abstract

We examine a balanced panel of globalization indices for 129 countries over the years 1991-2010. We report evidence of cross-country sigma convergence in the overall globalization index. Sigma convergence also holds for each of the economic, political, and social globalization indices, as well as each sub-index within these indices. However, the evidence for stochastic convergence, based on panel unit root tests, is only strong for the political globalization index. Regarding the economic and social dimensions of globalization, respectively, we find evidence for stochastic convergence only in the flows and cultural proximity sub-indices. For the OECD subsample, evidence supports stochastic convergence for the overall, economic and political globalization indices. Evidence to support regional convergence among the non-OECD nations on various globalization dimensions is much more limited. Our findings indicate that globalization convergence is truly global only on the political dimension.

Suggested Citation

  • Jac C. Heckelman & Andrew T. Young, 2014. "How Global is Globalization?," Working Papers 14-08, Department of Economics, West Virginia University.
  • Handle: RePEc:wvu:wpaper:14-08
    as

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    File URL: http://be.wvu.edu/phd_economics/pdf/14-08.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    globalization; institutions; sigma convergence; stochastic convergence; panel unit root tests;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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