Transcript MEASURING GLOBALIZATION

MA
Y
200
5
MEASURING
GLOBALIZATION
CSULA
BUS 515
WALTER ALMORA
SAMSON TESFASION
WHAT’S GLOBALIZATION?
Globalization is the increasing
interconnectedness
of people and societies
and the interdependence of economies,
governments and environments.
WHY MEASURE GLOBALIZATION?
WHY MEASURE GLOBALIZATION?
There appear to be
a direct relationship
among civil
liberties, more
political rights,
lower levels of
corruption and ...
the level of
globalization.
WHY MEASURE GLOBALIZATION?
Also, it seems to be a
relationship between
globalization and
patterns of inequality
of income.
HOW MUCH GLOBALIZATION
IS OUT THERE ?
HOW MUCH GLOBALIZATION
IS OUT THERE ?
“Trade flows are not
significantly higher
than they were prior to
1914 if one measures
them against GDP, but
loom much larger if
they are compared
against industrial
production.“
D. Rodrik, 1998
“Symposium on Globalization in Perspective: An Introduction” Dany Rodrik – 1998 – Journal of Economics Perspectives
HOW TO MEASURE
GLOBALIZATION?
 There is not a clear-cut method
for measuring the extent of
globalization.
 Researchers have used a variety
of references to provide an idea
on globalization and their impact.
FOREING POLICY MAGAZINE 2005
The FOREING POLICY Globalization
Index measures 12 variables and
group them in 4 categories:
1.
2.
3.
4.
Economic Integration
Personal contacts
Political engagements
Technological connectivity
ECONOMIC & FINANCIAL
INTEGRATION
 Economic integration can be measured
by the volume of Capital Flow, Trade, or
Gross Domestic Product (GDP)
between countries.
 Financial Integration can be measured
by the Amount of Foreign Direct
Investment, or, the Ratio of Foreign
Capital stock to GDP.
PERSONAL CONTACTS
 The amount of international travel
and tourism
 The amount of international
telephone traffic
 The amount of Remittances and
personal transfers
POLITICAL ENGAGEMENT
 The amount of membership in
international organizations
 The amount of personal and financial
contribution to UN peace keeping
missions
 The amount of international treaties
ratifications
 The amount of governmental
transfers
TECHNOLOGICAL CONNECTIVITY
 The amount of internet users
 The amount of internet hosts
 The amount of secure servers
Latest 2003 Actual Results
1.
2.
Singapore rank top in political
engagement due to 41% increase
in financial contribution to UN
peace keeping mission
Also Singapore rank first place in
foreign investment by signing
bilateral free trade agreement
with United States
2003 Results continued…
3.
Large nations with large
population and domestic market
(e.g. US) usually rank low in
foreign trade and investment
because they are less dependent
on them nevertheless, United
States jumped from 7th to 4th
became the first large country in
top five.
2003 Results continued…
4.
5.
United States also rank first in
technology connectivity basket
due to increased number of
internet hosts and number of
secure servers
Due to SARS epidemic tourism in
Asia dropped by almost 50% in
2003
Internet Users
As a Percentage of U.S. Population
100
90
80
70
60
59
50
40
30
44
50
55
36
20
10
0
1999
2000
2001
2002
2003