‘Globalisation’ has become fashionable. Enthusiasts speak of the borderless world, no more national frontiers, the whole world one market. More sober versions refer to the fact that, with liberalisation of markets and the information revolution, the ease and speed with which goods and services, and capital, move from one country to another has greatly increased. But there is much confusion in the literature about the causes and effects of this development. This paper attempts to sort out both, especially in relation to short and long-term capital movements. The concluding section addresses some of the hostile reactions that ‘globalisation’ has provoked.
A review essay on books by (1) Z. Drabek (Ed), Globalisation under Threat: The Stability of Trade Policy and Multilateral Agreements (Cheltenham, UK: Edward Elgar, 2001); (2) M. Hardt & A. Negri, Empire (London: Harvard U Press, 2000); & (3) A. P. J. Mol, Globalization and Environmental Reform: The Ecological Modernization of the Global Economy (London: MIT, 2001). 5 References.
Machine generated contents note: Part I The case for globalisation -- 1 Globalisation and its critics 3 -- 2 Popular myths and economic facts 63 -- Part II The business of globalisation 101 -- 3 The spread of equity culture 103 -- 4 Goodbye to taxpayers? 153 -- 5 How industries go global: from law to wine-making 189 -- Part m Rich and poor 211 -- 6 By invitation: on inequality, aid and the environment 213 -- 7 The uses of technology 239 -- Part IV Governing the global economy 277 -- 8 Reform of international financial architecture 279
With its 21 variables, the new composite globalisation index presented in this paper accounts for the multidimensionality of this phenomenon instead of relying purely on economic indicators. As compared to other existing globalisation indices, three major innovations are introduced: First, five variables that have until now not been used in globalisation indices enter the calculations. Second, geographical distances between countries are incorporated into the index in the trade variable, so as to account for the distinction between globalisation and regional integration. A final innovation is a methodological one, which concerns the use of a statistical method (principal component analysis) to form sub-indices according to the statistical features of the variable structure. A control for country size is employed for significantly affected variables, as was done in some other globalisation indices before. The final index contains 70 countries and covers the period of 1995 to 2005.