Indices of Globalisation

There are several indices available to meaure the

extent of globalisation. We will study the Kearney
index in more detail but before we do this, let’s take a
look at the KOF index.
In addition to the indices measuring the three dimensions, KOF calculates
an overall index of Globalisation and sub indices referring to actual
economic flows, data on personal contact and data on cultural proximity.
Economic Social
globalisation - Globalisatio
charaterised as n-
long distance The KOF expressed
flows of goods, as the
capital and
index has spread of
services, as three ideas,
well as information,
information dimensions images and
and people
perceptions
that
accompany Political
market globalisation -
changes characterised
by diffusion of
government
polices
 A shrinking world …
Which countries are most ‘globalised’?
A ‘globalisation index’ measures the interconnectivity of
countries based on different kinds of integration, divided
by a country’s GNP or its total population …
Measures of interconnectivity include:

A)Economic: Two dimensions: 1. Actual economic flows and

2. Restrictions on trade and capital

B)Political: Uses a number of embassies and high

commissions in a country, the number of international
organisations to which the country is a member and the
number of UN peace missions a country has participated in.

Social: Three categries used here:

1: Personal contacts - includes international telecom travel
(on going traffic in minutes per subscriber, the degree of
tourism (Incoming and outgoing), Government and workers
transfers received and paid (as a % of GDP), measures as to
what extent countries interact
2. Information flows - includes the number of internet
users, cable TV subsribers, number of radios (all per
1000), and international newspapers traded as a % of
GDP
3. Cultural proximity - Difficult to grasp but seen as
domination of US cultural products, e.g. number of
Macdonalds, and Ikea stores.