Abstract:Globalization is much debated, but is it possible to make reliable ranks of which countries are the most integrated internationally? Traditionally resort is taken to trade measures, but even considering only economic integration this measure disregards a number of aspects. This paper proposes a single measure or index of globalization based on several indicators of economic integration combined by use of the multivariate technique of factor analysis. The index is calculated for 23 OECD countries, and among the findings are that Ireland is ranked as the most globalized country during the 1990s, while the UK was at the top during the 1980s. Some of the most notable changes in the rankings are the decline of the USA, Canada, and to a lesser extent Japan and Norway. 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-1980s.
Document Type: Research Article
Affiliations: 1: University of Aarhus, Department of Economics, Universitetsparken, DK-8000 Aarhus C, Denmark 2: Herbertsson: Institute of Economic Studies, University of Iceland, Aragotu 14, IS-101 Reykjavik, Iceland
Publication date: 2005-06-10