Abstract
We introduce the revised version of the KOF Globalisation Index, a composite index measuring globalization for every country in the world along the economic, social and political dimension. The original index was introduced by Dreher (Applied Economics, 38(10):1091–1110, 2006) and updated in Dreher et al. (2008). This second revision of the index distinguishes between de facto and de jure measures along the different dimensions of globalization. We also disentangle trade and financial globalization within the economic dimension of globalization and use time-varying weighting of the variables. The new index is based on 43 instead of 23 variables in the previous version. Following Dreher (Applied Economics, 38(10):1091–1110, 2006), we use the new index to examine the effect of globalization on economic growth. The results suggest that de facto and de jure globalization influence economic growth differently. Future research should use the new KOF Globalisation Index to re-examine other important consequences of globalization and why globalization was proceeding rapidly in some countries, such as South Korea, but less so in others. The KOF Globalisation Index can be downloaded from http://www.kof.ethz.ch/globalisation/.
Highlights
How globalization influences our daily lives is still a controversial issue
We introduce the revised version of the KOF Globalisation Index, a composite index measuring globalization for every country in the world along the economic, social and political dimension
In the revised KOF Globalisation Index, we propose a broader definition of cultural globalization inspired by Raab et al (2008) and include additional variables compared to the previous version of the index
Summary
How globalization influences our daily lives is still a controversial issue. globalization was proceeding rapidly for a long time and it was hard to believe that globalization would be pushed back. Scholars need to account for manifold facets of globalization Composite indicators, such as the KOF Globalisation Index, are cases in point because they allow combining different variables, measuring different aspects of globalization, into one index. The KOF Globalisation Index, introduced by Dreher (2006) and updated in Dreher et al (2008), measures globalization along the economic, social and political dimension for almost every country in the world since 1970. The revised version of the KOF Globalisation Index distinguishes between de facto and de jure globalization. The revision of the KOF Globalisation Index includes other new components: we disentangle trade and financial globalization within the economic dimension of globalization, we allow the weights of the underlying variables to vary over time and we define cultural globalization in a broader way.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
