Measuring Globalization

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

No 817, IZA Discussion Papers from Institute of Labor Economics (IZA)

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

Downloads: (external link)
https://docs.iza.org/dp817.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp817

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().