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Globalization Development Within the Group of Twenty (G20) as Indicated by Globalization and Innovation Indices

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Part of the book series: Contributions to Economics ((CE))

Abstract

This chapter undertakes a taxonomic study of globalization development within the Group of Twenty (G20) as indicated by globalization and innovation indices. This study considers the impact of innovation promotion factors on the “globalization development degree” (fi) for the G20 member states and investigates how the globalization development of G20 members relates to the innovation promotion factors extracted from the Global Innovation Index (GII) indicators, used as the secondary data for the period 2012–2017. The KOF Index of Globalization is also used as the secondary data (the corresponding data for the period 2012–2017). KOF provides a globalization index and three subindices of globalization in its three main dimensions, i.e., economic globalization, social globalization, and political globalization. Consequently, the G20 member states (including the EU) are compared with each other, and nine variables are considered during the time period 2012–2017: four variables are the KOF index and its three subindices and five variables correspond to GII country ranking scores, as well as two variables selected from the GII input subindices (institution and business sophistication) and the two output subindices, namely, knowledge and technology outputs and creative outputs. The results manifest and demonstrate coherence between G20 economies under the gravity of globalization: a good example for the emerging markets worldwide. Moreover, in the wake of Brexit, the findings of this research shed light on a historical irony: United Kingdom’s leadership in globalization development during the recent years, followed by Germany, Canada, France, and the United States. Thus, the taxonomic study reported in this chapter provides an identification of country globalization development and presents relevant information to policy-makers, who seek to apply effective strategies and policies under the impact of globalization.

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Notes

  1. 1.

    European Union contains of 28 of the countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom).

  2. 2.

    G20 countries (Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States).

  3. 3.

    ASEAN Group (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam with two observers Papua and Timor-Leste).

  4. 4.

    NAFTA Group (United States_Mexico_Canada Agreement) has two supplements: the North American Agreement on Environment Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC).

  5. 5.

    http://globalization.kof.ethz.ch/ (KOF Swiss Economic Institute ETH Zurich).

  6. 6.

    2017 KOF Index Method, https://www.kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html

  7. 7.

    FDI: foreign direct investment (FDI is an investment ownership in a business in one country by an entity based in another country).

  8. 8.

    GDP (gross domestic product that is the standard measure of the value of the goods and services produced by a country during a reference period).

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Acknowledgment

The authorization granted to use the data and material originally provided by WIPO (the World Intellectual Property Organization) is appreciatively acknowledged. The secretariat of WIPO supposes no responsibility or liability with regard to the transformation of this data.

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Faghih, N., Sazegar, M. (2019). Globalization Development Within the Group of Twenty (G20) as Indicated by Globalization and Innovation Indices. In: Faghih, N. (eds) Globalization and Development. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-14370-1_2

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