The KOF Index of Globalization was introduced in 2002 by the Swiss Economic Institute and measures the three main dimensions of globalization: economic, political, and social. The economic dimension focuses on trade, investment, and financial flows. The political dimension examines things like diplomatic relations and international organization membership. And the social dimension looks at data on personal contacts, information flows, and cultural proximity. Countries are given an overall index value from 0 to 100 based on these factors, with a higher score indicating greater levels of globalization.
11. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
KOF Index of Globalization
12. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
KOF Index of Globalization
13. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
Three dimensions of the KOF Index of Globalization:
KOF Index of Globalization
14. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
Three dimensions of the KOF Index of Globalization:
economic globalization
KOF Index of Globalization
15. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
Three dimensions of the KOF Index of Globalization:
economic globalization
political globalization
KOF Index of Globalization
16. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
Three dimensions of the KOF Index of Globalization:
economic globalization
political globalization
social globalization
KOF Index of Globalization
17. Introduced in 2002
Swiss Economic Institute / Swiss Federal Institute of Technology
Defines globalization to be ‘a process of creating networks of
connections among actors at multi-continental distances, mediated
through a variety of flows including people, information and ideas,
capital and goods.’
Three dimensions of the KOF Index of Globalization:
economic globalization
political globalization
social globalization
Index value closer to 100 > the more globalized the country.
KOF Index of Globalization
19. KOF Index of Globalization - Economic Globalization
20. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
21. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
22. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
Restrictions to trade and capital - import barriers, mean tariff rates,
taxes on international trade.
23. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
Restrictions to trade and capital - import barriers, mean tariff rates,
taxes on international trade.
24. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
Restrictions to trade and capital - import barriers, mean tariff rates,
taxes on international trade.
Trade (% of GDP)
25. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
Restrictions to trade and capital - import barriers, mean tariff rates,
taxes on international trade.
Trade (% of GDP)
Income payments to Foreign Nationals (% of GDP)
26. KOF Index of Globalization - Economic Globalization
Long distance flows of goods, capital and services.
Actual economic flows - trade, FDI (foreign direct investment) and
portfolio investment.
Restrictions to trade and capital - import barriers, mean tariff rates,
taxes on international trade.
Trade (% of GDP)
Income payments to Foreign Nationals (% of GDP)
Mean Tariff Rate
28. KOF Index of Globalization - Political Globalization
29. KOF Index of Globalization - Political Globalization
Number of embassies and high commissions.
30. KOF Index of Globalization - Political Globalization
Number of embassies and high commissions.
Number of international organizations to which a country is a
member.
31. KOF Index of Globalization - Political Globalization
Number of embassies and high commissions.
Number of international organizations to which a country is a
member.
Number of UN peace missions a country participated in.
32. KOF Index of Globalization - Political Globalization
Number of embassies and high commissions.
Number of international organizations to which a country is a
member.
Number of UN peace missions a country participated in.
Number of treaties signed between two or more states.
34. KOF Index of Globalization - Social Globalization
35. KOF Index of Globalization - Social Globalization
Personal Contacts
36. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
37. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
38. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
39. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
40. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
41. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
Number of internet users
42. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
Number of internet users
Share of households with a television set
43. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
Number of internet users
Share of households with a television set
Cultural Proximity
44. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
Number of internet users
Share of households with a television set
Cultural Proximity
Imported and exported books
45. KOF Index of Globalization - Social Globalization
Personal Contacts
Direct interaction among people living in different countries
International telecom traffic
Degree of tourism
Information flows
Measure the potential flow of ideas and images
Number of internet users
Share of households with a television set
Cultural Proximity
Imported and exported books
Number of McDonald’s restaurants and IKEA stores
49. 0
25
50
75
100
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
KOF Index of Globalization - Change over time: China
50. 0
25
50
75
100
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
China Norway
KOF Index of Globalization - Change over time: Norway and China
51. KOF Index of Globalization - Evaluation
Globalization is complex
Regularly collected data?
Does the possession of a television set make a household more
globalized?
Is a country that is proactive in volunteering troops for UN missions
more globalized or are the reasons more complex?
When calculating the index economic globalization is weighted at
37%, social globalization at 39% and political globalization at 25%
- why not a third each?
Which do you think is the ‘weakest’ data set?