Methodology for assessing globalisation development of countries

Abstract

Under the conditions of economic globalisation, new trends are being formed in terms of social and economic development. There arises a need for a comprehensive assessment of the level of socio-economic development of countries in order to identify factors and components of effective globalisation development. Leading global institutions use different approaches and indicators to carry out such an assessment. However, they do not cover the entire spectrum of the development factors. Therefore, the issue of conducting researches to substantiate the optimal methodology for assessing countries' socio-economic development is relevant. The authors of this research applied the following methods: logical and comparative analysis, monographic method, deduction and induction. To provide a comprehensive assessment of socioeconomic development of countries in the context of economic globalisation, it is necessary to calculate an integral indicator. The authors of the article have developed a methodology for calculating such an indicator. To calculate the integral index, five indices, each of which is already an integral one, have been selected. Each of these components is calculated by world scientific, social, economic research institutes and covers all countries of the world. The importance of each component has been determined by the expert assessment method. Thus, GDPonPPPp has the highest rating of 5, the Index of Economic Freedom-4, the Index of Global Competitiveness-3, the Global Index of Innovations-2, and the Index of Globalisation-1. Luxembourg has the highest level of globalisation development among the countries under investigation with its integral index of 0.842. At the same time, the growth potential of the index is 15.8%. It has been concluded that globalisation is a major factor affecting the current level of development in most countries of the world. To identify the level of globalisation achieved by various countries and the main factors that determine it, a methodological approach has been developed, which involves calculation of the Integral Index of Globalisation Development (IIGD), including five components: gross domestic product of the country on purchasing power parity per person, Globalisation Index, Global Competitiveness Index, Global Index of Innovations, Index of Economic Freedom, each of which has different weight, determined on the basis of expert judgment. The obtained results allow making managerial decisions concerning the formation of development models of countries under the conditions of economic globalisation.