2013 KOF Index of Globalization: Definitions and Sources

Source:

Updatedin:

Indices and Variables Sources Definitions

A. Economic Globalization

i)DataonactualFlows

Trade(percentofGDP) WorldBank(2011) Tradeisthesumofexportsandimportsofgoodsandservicesmeasuredasashareofgrossdomesticproduct.DataareinpercentofGDP.

ForeignDirectInvestment,stocks(percentofGDP) UNCTAD(2011) SumofinwardandoutwardFDIstockasapercentageofGDP.

PortfolioInvestment(percentofGDP) IMF(2011) Portfolioinvestmentisthesumofportfolioinvestmentassetsstocksandportfolioinvestmentliabilitiesstocks.DataareinpercentofGDP.

IncomePaymentstoForeignNationals(percentofGDP) WorldBank(2011) Incomepaymentsrefertoemployeecompensationpaidtononresidentworkersandinvestmentincome(paymentsondirectinvestment,portfolioinvestment,otherinvestments).Incomederivedfromtheuseofintangibleassetsisexcluded.DataareinpercentofGDP.

ii)Dataonrestrictions

HiddenImportBarriers Gwartneyetal.(2012) TheindexisbasedontheGlobalCompetitivenessReportssurveyquestion:Inyourcountry,tariffandnon-tariffbarrierssignificantlyreducetheabilityofimportedgoodstocompeteinthedomesticmarket.Thequestionswordinghasvariedslightlyovertheyears.

MeanTariffRate Gwartneyetal.(2012) Asthemeantariffrateincreases,countriesareassignedlowerratings.Theratingdeclinestowardzeroasthemeantariffrateapproaches50%.

TaxesonInternationalTrade(percentofcurrentrevenue) WorldBank(2011) Taxesoninternationaltradeincludeimportduties,exportduties,profitsofexportorimportmonopolies,exchangeprofits,andexchangetaxes.Currentrevenueincludesallrevenuefromtaxesandnonrepayablereceipts(otherthangrants)fromthesaleofland,intangibleassets,governmentstocks,orfixedcapitalassets,orfromcapitaltransfersfromnongovernmentalsources.Italsoincludesfines,fees,recoveries,inheritancetaxes,andnonrecurrentleviesoncapital.Dataareforcentralgovernmentandinpercentofallcurrentrevenue.CapitalAccountRestrictions Gwartneyetal.(2012) Indexbasedontwocomponents:(i)Beginningwiththeyear2002,thissub-componentisbasedonthequestion:Foreignownershipofcompaniesinyourcountryis(1)rare,limitedtominoritystakes,andoftenprohibitedinkeysectorsor(2)prevalentandencouraged.Forearlieryears,thissub-componentwasbasedontwoquestionsaboutAccessofcitizenstoforeigncapitalmarketsandforeignaccesstodomesticcapitalmarkets.(ii)IndexbasedontheIMFsAnnualReportonExchangeArrangementsandExchangeRestrictions,including13differenttypesofcapitalcontrols.Itisconstructedbysubtractingthenumberofrestrictionsfrom13andmultiplyingtheresultby10.

B. Social Globalization

i)DataonPersonalContact

TelephoneTraffic InternationalTelecommunicationUnion(2011)

Internationalvoicetrafficisthesumofinternationalincomingandoutgoingtelephonetraffic(inminutesperperson).Whenfixedandmobiletrafficisnotavailable,fixedtrafficisused.

Transfers(percentofGDP) WorldBank(2011) Sumofgrossinflowsandgrossoutflowsofgoods,services,income,orfinancialitemswithoutaquidproquo.DataareinpercentofGDP.

InternationalTourism WorldBank(2013) Sumofarrivalsanddeparturesofinternationaltouristsasashareofpopulation.

ForeignPopulation(percentoftotalpopulation) WorldBank(2011) Foreignpopulationisthenumberofforeignorforeign-bornresidentsinacountry.Dataareinpercentoftotalpopulation.

Internationalletters(percapita) UniversalPostalUnion,PostalStatisticsdatabase

Numberofinternationalletterssentandrecievedpercapita.

ii)DataonInformationFlows

InternetUsers(per1000people) WorldBank(2011) Internetusersarepeoplewithaccesstotheworldwideinternetnetwork.

Television(per1000people) WorldBank(2007),InternationalTelecommunicationUnion(2011)

Shareofhouseholdswithatelevisionset.

TradeinNewspapers(percentofGDP) UnitedNationsCommodityTradeStatisticsDatabase(2011)

ThesumofexportsandimportsinnewspapersandperiodicalsinpercentofGDP.DataareprovidedbytheStatisticalDivisionoftheUnitedNationsandcorrespondtothosepublishedintheU.N.WorldTradeAnnual.

Dreher,Axel,2006,DoesGlobalizationAffectGrowth?EmpiricalEvidencefromanewIndex,Applied Economics 38,10:1091-1110.

Dreher,Axel;NoelGastonandPimMartens,2008,Measuring Globalization - Gauging its Consequences ,NewYork:Springer.

Indices and Variables Sources Definitions

iii)DataonCulturalProximity

NumberofMcDonald'sRestaurants(percapita) varioussources NumberofMcDonald'sRestaurants(percapita).

NumberofIkea(percapita) Ikea NumberofIkea(percapita).

Tradeinbooks(percentofGDP) UNESCO(variousyears),UnitedNationsCommodityTradeStatisticsDatabase(2011)

ThesumofexportsandimportsinbooksandpamphletsinpercentofGDP.DataareprovidedbytheStatisticalDivisionoftheUnitedNationsandcorrespondtothosepublishedintheU.N.WorldTradeAnnual.

C. Political Globalization

EmbassiesinCountry EuropaWorldYearbook(variousyears)

Absolutenumberofembassiesinacountry.

MembershipinInternationalOrganizations CIAWorldFactbook(variousyears)

Absolutenumberofinternationalinter-governmentalorganizations.

ParticipationinU.N.SecurityCouncilMissions DepartmentofPeacekeepingOperations,UN

PersonnelcontributedtoU.N.SecurityCouncilMissionspercapita.

InternationalTreaties UnitedNationsTreatiesCollection

Anydocumentsignedbetweentwoormorestatesandratifiedbythehighestlegislativebodyofeachcountrysince1945.Notratifiedtreaties,orsubsequentactions,andannexesarenotincluded.TreatiessignedandratifiedmustbedepositedintheOfficeofSecretaryGeneraloftheUnitedNationstobeincluded.

References

CentralIntelligenceAgency(variousyears),WorldFactbook,https://www.cia.gov/library/publications/the-world-factbook/.

EuropaWorldYearbook(variousyears),Routledge.

InternationalTelecommunicationUnion(2011),WorldTelecommunication/ICTIndicatorsdatabase.

UNCTAD(2011),UNCTADstat,http://unctadstat.unctad.org.

UNESCO(variousyears),StatisticalYearbook.

UniversalPostalUnion,PostalStatisticsdatabase,http://www.upu.int.

UnitedNationsCommodityTradeStatisticsDatabase(2011),http://comtrade.un.org/.

UnitedNationsDepartmentofPeacekeepingOperations,http://www.un.org/Depts/dpko/dpko/contributors/.

UnitedNationsTreatiesCollection,http://treaties.un.org.

WorldBank(2007,2011,2013),WorldDevelopmentIndicators,Washington,DC.

Gwartney,JamesD.;JoshuaC.HallandRobertLawson(2012),2012EconomicFreedomDataset,publishedinEconomicFreedomoftheWorld:2012AnnualReport,Publisher:EconomicFreedomNetwork,http://www.freetheworld.com/2012/EFWdataset2012.xls.

InternationalMonetaryFund(2011),InternationalFinancialStatisticsIndicators,CD-Rom,December,Washington,DC.