The KOF Globalisation Index - Revisited

45 Pages Posted: 21 Feb 2019

See all articles by Savina Gygli

Savina Gygli

Swiss National Bank

Florian Haelg

ETH Zurich

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Jan-Egbert Sturm

KOF Swiss Economic Institute, ETH Zurich; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: 2018

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 (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 (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.

Keywords: globalization, composite indicators

JEL Classification: F150, F360, F430, F530, F600, F620, O190, O240, O5

Suggested Citation

Gygli, Savina and Haelg, Florian and Potrafke, Niklas and Sturm, Jan-Egbert, The KOF Globalisation Index - Revisited (2018). CESifo Working Paper No. 7430. Available at SSRN: https://ssrn.com/abstract=3338784

Savina Gygli (Contact Author)

Swiss National Bank

Research
Fraumuensterstr. 8
Zuerich, 8022
Switzerland

Florian Haelg

ETH Zurich ( email )

Rämistrasse 101
ZUE F7
Zürich, 8092
Switzerland

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Jan-Egbert Sturm

KOF Swiss Economic Institute, ETH Zurich ( email )

Zurich
Switzerland

HOME PAGE: http://www.kof.ethz.ch

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, 81679
Germany

HOME PAGE: http://www.cesifo.de

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