On The Indicators System Of Economic Globalization

Globalization has become a trend of the world in many aspects such as economy, science & technology, and society. As a result, all the economies in the world are integrated together more than before. Based on the measurable point of the author, globalization is composed of economic globalization, science & technology globalization and social globalization. Economic globalization nowadays is driven by information technology. Not only the governments of all the economies but also TNCs (transnational corporations) are pushing the process. So that international trade and investment got a rapid increase. But how tight is the economic integration? Therefore, an index to measure it is needed. This issue will be discussed in this dissertation. This subject stems from Mr. Li Huiming's project On The Indicators System of Globalization. In this paper, the indicators system of economic globalization is focused on. After a brief introduction, it firstly makes a review on the research of the globalization or economic globalization indicators of both at home and abroad. Then, based on clarifying what is globalization and what is economic globalization, it constructs the indicators system of economic globalization that includes 13 variables from the aspects of international trade, international factor movement, international production and international finance by using quantitative and qualitative methods. Finally, it makes a positive analysis of the indicators system by using factor analysis to measure and rank the economic globalization of 62 economies. It also makes a correlation analysis to make sure if the author's ranking has significant correlation with the ranking of A.T. Kearney /Foreign Policy Globalization Index. There are some innovations in this paper. First, in order to construct a normative indicators system, the meaning of globalization and economic globalization is discussed. Second, cross-border M&A and Service Trade were selected as two individual indicators which embodies the characteristics of nowadays economic globalization. Third, the world market share of imports of parts and components for automobiles and electronic products which is one of the indicator in Inward FDI Potential Index of UNCTAD is used as an indicator of international production in this paper. The fourth one, in this paper, a correlation analysis is made between the author's ranking and the ranking of economic integration of A.T. Kearney /Foreign Policy Globalization Index. This research is a fundamental one, which will enrich the fruit of the theory of international trade in quantitative study. To my opinion, the indicators system of economic globalization will be instructive for the construction of the socialist market economy in China.