ABSTRACT
Some attempts have been made to capture the multidimensional nature of globalization by cross-examining data on both trade and capital. The intensity of trade across countries in goods, capital, labor and knowledge has reached a new momentum in the past few decades and the world is now closer to a truly global economy than ever before. Globalization can be seen every where and is the outcome of a complex historical process that evolved unevenly across time and space. A comprehensive study of globalization has to capture the phenomenon in its multiple facets by simultaneously taking account of the international market integration of goods, labor, capital and technology. Quantity-based indicators of economic globalization assess the size of international flows of commodities and factors in either absolute or relative terms, using variables such as gross domestic product (GDP), workforce or investment. Since investments in technology depend on profitability, their effective adoption is influenced by the institutional background.
