On the Correlation between Globalization and Vulnerability in Times of Economic Crisis — A Statistical Analysis for Europe

Abstract

In this paper, we test the hypothesis that more globalized countries in Europe are equally vulnerable to the current crisis as less globalized European countries. To determine the level of globalization, we use the Maastricht Globalization Index (MGI). We measure the severity of the economic crisis with five key economic indicators. The results seem to suggest that the rising level of globalization increases vulnerability to economic crises on the one hand, while, on the other, higher levels of globalization increase the opportunities to deal with a crisi