Measuring globalisation: An evolutionary economic approach to tracking the evolution of international trade

Abstract

Operationalising and measuring the concept of globalisation is important, as the extent to which the international economy is integrated has a direct impact on industrial dynamics, national trade policies and firm strategies. Using complex systems network analysis with longitudinal trade data from 1938 to 2003, this paper presents a new way to measure globalisation. It demonstrates that some important aspects of the international trade network have been remarkably stable over this period. However, several network measures have changed substantially over the same time frame. Taken together, these analyses provide a novel measure of globalisation