Let me Google that for you: Capturing globalization using Google Trends

Abstract

In this research note, we propose Google Trends as a uniquely versatile and overlooked resource for research on globalization. Search volumes on Google indicate individuals’ information gathering and attention allocation. The research note employs these search volumes to build a recognition-based measure for internationalization of research subjects. First, we test the reliability of the Google Trends measures as substitute for traditional measures of firm internationalization. Google Trends offers highly reliable and finely grained data that provide a market-side complement to accounting-based measures of firm internationalization. Subsequently, we discuss conceptual and theoretical properties of measures for internationalization based on Google Trends. Finally, we outline novel and innovative applications of the proposed internationalization measures to research subjects beyond the firm-context.

Keywords: Measuring Internationalization, Google Trends, Degree of Internationalization, Volume of Internationalization, Firm Internationalization

JEL Classification: F23,F6,M16