Measuring Global Interactions

Measuring Global Interactions

1. The KOF Index

   • Economic Globalization
     • Actual Flows- Measures actual economics flows including data on trade, FDI and portfolio investment
     • Restrictions- Refers to restrictions on trade and capital using hidden import barriers, mean traffic rates, taxes on international trade and an index capital controls
   • Social Globalization
     • Personal contacts- Measures international telephone traffic, monetary transfers, tourism in and out of the country, foreign population, and international letters
     • Information flows- Measures internet users(per 100 people), television ownership(per 100 people), trade in newspapers(as a percent of GDP)
     • Cultural Proximity- Measures the number of McDonald’s restaurants, number of Ikea shops, number of English songs in national hit lists, movies shown in national cinemas that originated in Hollywood and trade in books
   • Political Globalization
     • It measures the number of embassies and high commissions in a country, number of international organizations the country is a member of, number of UN Security Council peace missions a country participated in and International treaties

2. AT Kearney

   • Economic Integration
     • It combines data on international trade, foreign direct investment inflows and outflows and international travel and tourism
   • Technological Connectivity
     • It counts the number of internet users, internet hosts and secure servers in a country
   • Political engagements
     • It includes each country's membership in a variety of representative international organizations e.g. foreign aid, treaties, organizationa and peacekeeping operations
   • Personal contacts
     • It measures international telephone calls, cross-border remittances and travel