Page 11 - bne_newspaper_June_22_2018

bne Chart
June 22, 2018 www.intellinews.com I Page 11
“The emerging countries’ weak position in
terms of absolute globalisation gains is due to their low economic output in the baseline year, among other reasons. The ranking changes when relative globalisation gains are considered: The cumulative globalisation-based per capita income gains relative to per capita GDP in 1990 amount to 518% for China. In Germany, they are only 148% and, for the United States, only 39%,” the Bertelsmann foundation said in the report.
The foundation added that major changes
of more than four places can be observed
for Slovenia, New Zealand, Norway and the Netherlands. These shifts are mainly driven by above- and below-average dynamics in the globalisation index and economic growth from 2014 to 2016, which was not reflected in the 2016 report.
A separate index looks at how globalised each of the economies are. Among the emerging markets on this index, Hungary is leader from the Central and Southeast Europe, taking 10th place. The Czech Republic follows, being in 15th position, Slovakia is next in 17th, followed by Bulgaria in 22nd, Slovenia in 25th, Romania in 27th, Turkey in 35th and Russia in 36th.
The German foundation explains why the coun- tries that score well on the overall index do not necessarily line up with those whose per capita GDP has most benefited from globalisation. It’s notable that countries with the highest level of
globalisation – Ireland, the Netherlands, Bel- gium — usually do not occupy the top places on the index of per capita gains in income due to globalisation. The diverging places in the two rankings can be attributed to country specific dynamics in global networking. It is not a con- sistently high degree of globalisation, but rather a growing degree of globalisation over time that gives rise to income gains due to globalisa-
tion – Ireland, the Netherlands and Belgium had probably already achieved significant gains in income through international networking before the beginning of the analysis period, the report reads.
Overall, however, the regression analysis demonstrates that globalisation has a significant positive impact on the growth of per capita GDP, Bertelsmann says. The estimated coefficient of 0.33 says that an average increase of one point in the globalisation index leads to an increase
of 0.33 percentage points in the growth of per capita GDP.
“A specific example: The globalisation index
for Germany increased by an average of 0.52 points p.a. between 1990 and 2016. Accordingly, an annual average of 0.17 percentage points of the per capita growth in Germany can be traced back to the increase in networking with the rest of the world. As a whole, the average growth
in per capita GDP over that period was 1.33%. Thus, globalisation plays an important role in this growth,” the foundation said.