Measuring Globalization

Torben M. Andersen () and Tryggvi Herbertsson ()
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Torben M. Andersen: Aarhus University

No 817, IZA Discussion Papers from IZA Network @ LISER

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.

Keywords: factor analysis; globalization index; OECD (search for similar items in EconPapers)
JEL-codes: C82 F02 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2003-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Published - published as 'Quantifying Globalization' in: Applied Economics, 37 (10), 2005, 1089 - 1098

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