Economy

Luxembourg in 19th place on the 2017 globalisation index

The Swiss Federal Institute of Technology in Zurich (ETH) just published its 2017 edition of the composite globalisation index 'KOF'.

24-mondialisationThis index reflects the state of globalisation in 187 countries throughout the world, based on 23 variables grouped into 3 sub-categories:

•             economic globalisation (36% ponderation in the KOF index),

•             social globalisation (37% ponderation),

•             political globalisation (27% ponderation).

The KOF index measures globalisation on a scale between 1 (least globalised) and 100 (the most globalisation). In this 2017 edition of the study, the data originated mainly in 2014.

Globally speaking, the Netherlands are the most globalised country in the world (92.84/100), closely followed by Ireland (92.15) and Belgium (91.75). Luxembourg ranks 19th in the world, with a score of 84.21/100, France comes in at rank 9 (87.19) and Germany at rank 16 (84.57).

The Grand Duchy is 3rd for economic globalisation

The economic dimension of globalisation comprises different parts:

  • flow of goods, investments and revenues in comparison to the GDP;
  • influence of restrictions imposed on the flow of goods and capital.

The classification of economic globalisation is led by Singapore (97.77), Ireland (94.65) and Luxembourg (94.06).

The social dimension is based on three categories:

  • personal international contacts, i.e. letters and telephone calls, as well as tourist movements and the size of the foreign resident population;
  • international flow of information, as measured by access to internet, television and international media;
  • the cultural proximity to global currents, such as the number of McDonald's restaurants and IKEA stores, as well as exports and imports of books, as compared to the GDP.

Singapore (91.61) comes in 1st place in this ranking. Switzerland is second (91.13), while Ireland comes in third position (90.99). Luxembourg comes in 28th position (79.39).

Finally, the political dimension is measured through:

  • the number of embassies to other countries;
  • the number of affiliations to international organisations;
  • the number of UN peacekeeping missions in which the country participates;
  • the number of bilateral and multilateral treaties to which the country has adhered since 1945.

In this category, France comes in first place (97.29), followed by Italy (97.25) and Belgium (95.79). Luxembourg comes in 63rd place (77.98).

(Source: press release by the Observatory for Competitiveness)

  • Updated 26-04-2017