Lockwood, Ben (2001) How robust is the Foreign Policy/Kearney index of globalisation? Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

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Abstract

This short paper argues that the widely-known Kearney/Foreign Policy (KFP) index of globalisation is constructed by making some problematic assumptions about the normalisation and weighting of the variables included in the index. We propose alternative normalisation and weighting rules, and using these rules, recalculate the ranking of the fifty countries, using the original KFP data. Specifically, we use the statistically optimal weights obtained by principal components analysis, and a normalisation rule that treats different years of observations separately. We find that up to 85% of countries change position under the new rules, some of them substantially.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	J Political Science > JZ International relations
Divisions:	Faculty of Social Sciences > Economics Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	Globalization -- Political aspects, Economic indicators, Index numbers (Economics), Economic theory
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	November 2001
Number:	No.79/
Number of Pages:	18
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Description:	First version, August 2001; this version, November 2001
References:	A.T.Kearney, Inc. Global Policy Group & Foreign Policy Magazine (2001), “Measuring Globalisation”, Foreign Policy, 122, 56-65 Mardia, K.V., J.Kent, and J.Bibby (1994), Multivariate Analysis, Academic Press Pritchett, L.,(1996), “Measuring outward orientation in LDCs: can it be done?” Journal of Development Economics, 49, 307-335 Sachs,J.(2001), “Tropical Underdevelopment”, NBER Working Paper No. W8119 UNDP(1998), Human Development Report 1998, Oxford University Press
URI:	http://wrap.warwick.ac.uk/id/eprint/2039

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