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Monday, November 03, 2014

'The World Is Still Not Flat'

Justin Fox:

The World Is Still Not Flat, by by Justin Fox: Globalization marches on. But the pace isn’t all that fast, and the overall level of global connectedness still hasn’t gotten back to its all-time peak of 2007. The overwhelming majority of commerce, investment, and other interactions still occur within — not between — nations.
That’s the message from the just-released DHL Global Connectedness Index 2014...
The big news..., other than global connectedness getting back close to its 2007 peak, is that the breadth of connectedness is still declining. Breadth is a measure that reflects how many different countries a particular country is interacting with and the distances over which interactions occur, among other things. ...
This global decline in the breadth of connectedness ... suggests that “with the big shift in economic activity to emerging markets, the world is in some sense getting pulled apart.” For the past couple of decades, globalization been largely driven by trade, investment, and other interactions between developed countries and developing ones. Now the action is among the developing countries (and formerly developing countries), which is having the effect of re-regionalizing many economic flows. ...

[There's quite a bit more in the full post.]

    Posted by on Monday, November 3, 2014 at 09:20 AM in Economics, International Trade | Permalink  Comments (17)


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