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Comparing KOF & Kearney
LEARNING OBJECTIVES
1.
2.
To identify the strengths and weaknesses of the KOF and Kearney
index
To evaluate which is the best index for showing Globalization
A. T. Kearney Index
• Broken into 4 categories
–Economic Integration
–Personal Contact
–Technological Connectivity
–Political Engagement
A.T. Kearney - Economic
• Trade & Foreign Direct Investment (FDI)
A. T. Kearney - Personal
• Telephone traffic
• Travel
• Remittances and Personal Transfers
A. T. Kearney - Technological
• Internet Users
• Internet Hosts
• Secures Servers
A. T. Kearney – Political
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•
•
•
International Organizations
U.N Peacekeeping
Treaties
Government Transfers
A. T Kearney – How is it
calculated?
• The lowest value is given a 0, the highest
is given a 1 and then relative values are
given to the ones in between.
• FDI, Internet and Telephone Traffic is
weighted double
• All scores are then summarized
A. T Kearney Advantages
•
•
•
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It covers 96% of worlds GDP
It covers 84% of worlds Population
Allows for comparison between countries
Allows for comparison over time
A. T Kearney - Disadvantages
• Only 64 Countries are included in the
index
• Weightings – who decides?
• How do you measure cultural trends?
A. T Kearney Criticisms
• Smaller countries tend to take the top
places in the index due to higher
proportion/importance of FDI – therefore
suggesting an over importance of the size
of the country.
A. T Kearney - Response
• Not statistically significant
Points of Note with KOF Index
• The KOF Index of 2009 shows that
globalization is still on the rise, driven by
increased economic and political
globalization, while social globalization
stagnates.
• According to the KOF Index of
Globalization 2009, Belgium is the world's
most globalised country, although it is not
on the top of any of the three dimensions
Advantages of KOF
• The index allows comparing degree and
changes in globalization over a large
number of countries and more than 30
years.
• The KOF Index of Globalization 2009 is
available for 158 countries over the period
1970–2006,
• It is calculated on the basis of 24
variables.
Advantages of KOF Index
• employing the weighted individual data
series instead of using the aggregated
lower-level globalization indices data can
enter the higher levels of the index even if
the value of a sub-index is not reported
due to missing data
Disadvantages of KOF
• the results were sometimes driven by
extreme outlying observations and missing
values.
• cultural globalization mostly refers to
the domination of U.S. cultural products.
Arguably, the United States is the trendsetter in much of the global socio-cultural
realm