Categories by which the index is assessed

The globalisation index aims to assess the most important components of international integration, from engagement in international…

The globalisation index aims to assess the most important components of international integration, from engagement in international relations and policy-making to trade and financial flows and the movement of people, ideas and information across borders.

It tracks changes in these areas across 62 advanced economies and key emerging markets.

The index quantifies economic integration by combining data on trade, foreign direct investment, portfolio capital flows and income payments and receipts.

It charts personal contact through measuring the level of international travel and tourism and international telephone traffic.

READ MORE

Technological connectedness is counted by the total of Internet users as well as the number of Internet hosts and secure servers, large computers which allow Internet traffic and transactions.

The final category measured by the survey is political engagement. This is assessed by taking stock of the number of international organisations and UN Security Council missions in which each country participates, as well as the number of foreign embassies hosted.

For most variables, each year's inward and outward flows are added and the sum is divided by the country's nominal economic output or, where appropriate, its population.

(The political data are treated differently, with panels of data allowing comparison between countries of all sizes).

In the final calculation, foreign direct investment and portfolio capital flows are given a high weighting, due to their importance in globalisation. Internet usage and international telephone traffic are also given a high weighting, reflecting their importance in the exchange of ideas.