Has the world economy reached its globalization limit?

Abstract

The economy globalization measure problem is discussed. Four macroeconomic indices of twenty among the "richest" countries are examined. Four types of "distances" are calculated.Two types of networks are next constructed for each distance measure definition. It is shown that the globalization process can be best characterised by an entropy measure, based on entropy Manhattan distance. It is observed that a globalization maximum was reached in the interval 1970-2000. More recently a deglobalization process is observed.

Measuring Global Economic Interdependence: A Hierarchical Network Approach

“…We analyse the evolution and dynamics of these clusters without looking at why clusters form. In line with Mantegna (), Ortega and Matesanz (), Miskiewicz and Ausloos () and Brida et al. (), among others, our methodological approach is based on the analysis of a correlation matrix and the networks it contains.…”

Economic deglobalization – from hypothesis to reality

“…Some researchers [11], [14], [30] point out in recent studies that within the last 10-20 years, deglobalization phenomena have in fact surfaced more intensively at a global level. At least the last wave of globalization shows atypical tendencies when compared to the former ones [24].…”

Cross-Correlations of the Forex Market Using Power Law Classification Scheme Picture

“…Globalization of the world economy does not only stimulate the economic growth [1], improve food security and resource sustainability [2], and obviously influence politics [3], but also results in increase of cross-correlation among financial time series [4][5][6][7]. The growth of mutual dependences among various entities (firms, companies, bonds, shares, currencies, etc.)…”

“…The second group of methods are the algorithms originated in DFA such that MF-CCA [8,16]. The third set, very promising, are the Manhattan distance based algorithms -the entropy analysis [6,7] and the power low classification scheme (PLCS) [11,12,17,18]. The later method allows measuring the strength and stability of correlations.…”