Abstract
Globalisation has become to be far more than a social commentator’s buzzword in contemporary times. Consequently, the measurement of globalisation is now of central concern, whether for academe, business, the mass and specialised media or policy circles. In business, globalisation measures or indices can be employed for gaining insight into the investment climate, the current developments of growth and for an understanding of the international business environment. For the media, an index can be the subject of a short news item or a feature article. It can also serve as an illustration for news coverage on related topics, such as technological developments. For policy-makers, globalisation measures provide a world perspective within which policy initiatives will be operational.
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- 1.
Using openness proxies, Beer and Boswell (2001) and Mah (2002) examine the consequences of globalisation on inequality and Li and Reuveny (2003) analyse their effects on democracy. Heinemann (2000) finds that more globalised countries have lower increases in government outlays and taxes. Vaubel (2000) finds them to have lower government consumption.
- 2.
See Foreign Policy (2001, 2004 and 2005).
- 3.
Originally published as the Modified Globalisation Index (Martens and Zywietz, 2006).
- 4.
The report titled Measuring Globalisation is published annually in Foreign Policy magazine.
- 5.
See Kale (2004) who discusses the link between, religion, spirituality and globalisation.
- 6.
See also UNDP (2002) and Zywietz (2003).
- 7.
See Table 3.1 for data sources.
- 8.
The data are for 2000 and available at: http://www.un.org/popin (accessed October 15, 2006).
- 9.
The original source for the data is the International Telecommunication Union and is available from the World Bank (2002).
- 10.
See Rosendorff and Vreeland (2006).
- 11.
Since then, two updates have been presented in 2005 and 2006.
- 12.
This is the approach suggested by Clark (2000), Norris (2000) and Keohane and Nye (2000), among others.
- 13.
Data on trade and FDI flows are from World Bank (2002) and data for the stock of FDI are from United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report. Data on portfolio investment are from IMF (2002).
- 14.
This index is based on the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions and includes 13 different types of capital controls. The index is constructed by subtracting the number of restrictions from 13 and multiplying the result by 10. The data for mean tariff rates and hidden import barriers are also from Gwartney and Lawson (2002).
- 15.
Data on the number of internet hosts are from the International Telecommunications Union’s Yearbook of Statistics and its World Telecommunication Indicators Database. The other variables in this sub-index are from World Bank (2002).
- 16.
See, e.g., Datum 9/06, http://www.datum.at/0906/stories/2760960/ (accessed October 15, 2006).
- 17.
Note that this represents a methodological change with respect to the 2005 version of the index, where missing values have been only interpolated for hidden import barriers, mean tariff rates, capital account restrictions, number of embassies in a country, membership in international organisations, foreign population, costs of telephone calls to the United States and the number of McDonald’s restaurants.(see http://globalization.kof.ethz.ch/
- 18.
Note that – in contrast to the 2002 version of the index – Hong Kong, SAR is no longer included, so the 2007 index is available for 122 countries.
- 19.
The correlation between economic globalisation and social globalisation is 0.85, that between economic globalisation and political globalisation 0.34 and that between social and political globalisation 0.46.
- 20.
See also Rennen and Martens (2003).
- 21.
A possible solution to the difficulty associated with delineating globalisation and internationalisation is to subtract regional flows or flows from neighbouring countries from total flows. This method is proposed by Caselli (2006, p. 17). However, the issue about how to define regions arises. For example, to which region does Turkey belong?
- 22.
Caselli (2006, pp. 20–1) also recognises that “risk” is a binding factor, but that it is impossible to measure except for the planet itself. Since risk and globalisation coincide on many issues (e.g., the over-exploitation of natural resources and nuclear arms proliferation), risk cannot be sensibly measured.
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Dreher, A., Gaston, N., Martens, P. (2008). The Measurement of Globalisation. In: Measuring Globalisation. Springer, New York, NY. https://doi.org/10.1007/978-0-387-74069-0_3
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