Global Competitiveness of Developed Market Economies and Its Relation to Dimensions of Globalization

Globalization Is often understood as increasing global economic Integration, global forms of governance; globally inter-linked social and environmental development The aim of this article is to map, analyze and evaluate, by the means of statistical analysis, the mutual relationships between three dimensions of globalization (economic, social and political) and the global competitiveness of developed market economies. The developed market economies are 35 countries with the highest values of the composite Human Development Index (HDI). The first part provides the methodology of measure overall globalization using the composite Index of Globalization KOF 2011. The second part introduces the way of measuring competitiveness - the Global Competitiveness Index 2011, its methodology and results. The third part compares indices and scores together, analyzes them, and confirms or refutes the empirical relationships between the Index of Globalization and its dimensions and the Global Competitiveness Index. It is possible to conclude from the results achieved in the study that globalization remains primarily a very strong and powerful economic phenomenon: more globalized countries are more developed. A statistically significant association between globalization and global competitiveness was demonstrated but in the case of the most developed countries the possibilities of globalization to promote their competitiveness seems to be exhausted. There are weak links between social globalization and political globalization and global competitiveness in the developed market countries. The economic dimension of globalization is not statistically significantly correlated with global competitiveness in the developed market economies. For developed market economies with a high degree of engagement in international relations, technological and innovative processes are possibilities to increase their global competitiveness.