Economy

ETH - Index of Globalization 2016: Luxembourg drops to 18th place

The 'KOF Index of Globalization' measures the different dimensions of globalisation

04-kofETH Zurich has just published the 2016 edition of its index on globalisation 'KOF Index of Globalization'. This index measures the economic, social and political dimensions of globalisation, by taking into account 23 variables. Luxembourg ranks 18th in the global ranking, with a score of 83.55 out of 100. In 2015, Luxembourg was in 15th position. Within Europe, Luxembourg ranks 16, and within the European Union 14. The overall ranking is led by the Netherlands, followed by Ireland and Belgium. The previous year the three countries already shared the first three places in the global ranking. 

Luxembourg's performance is particularly high in the economic dimension of globalisation, for which the country has a score of 91.80 out of 100 (3rd position as in 2015). The economic dimension measures the flow of goods, services and capital, as well as information and perceptions related to commercial trade. It also measures the impediments to capital flows and trade.

For social globalisation, Luxembourg displays a score of 78.73 (30th place in 2016, 26th place in 2015). Here it's Austria, Singapore and Switzerland that share the podium. The social dimension measures the spread of ideas and information, images and people, etc.

For political globalisation, Luxembourg gets a score of 79.44 and ranks 60th (62nd in 2015). Italy is at the top of this partial index, followed by France and Belgium. The political dimension reflects the diffusion of government policies, such as the number of embassies in the country, the importance of membership in international organisations etc.

Indeed, since the early 1970s, Luxembourg has become an increasingly globalised country. The overall globalisation index rose from a level of 71.56 in 1970 to 83.55 in 2016. Economic globalisation has remained constantly at a high level during those years, social globalisation has increased significantly from an indexed level of 57.39 to 78.73 in 2016. Finally, political globalisation has also increased sharply by moving from a level of 61.91 in 1970 to 79.44 in 2016.

(Source: Article published on the website of the Observatory of the competitiveness)

  • Updated 08-03-2016