DHL Global Connectedness Index 2014

286 Appendix B – Data Sources, Regression Results, Region Classifications
Part 1 Data Sources Employed
Table B.3 Data (continued) Sources Data Employed Sources for Employed Structural for and Structural Policy Drivers and Policy of Connectedness Drivers of Connectedness Reported in Reported Country Profiles in
Country (and used Profiles in Regression (and used Analysis) in Regression Analysis)
Category Variable Definition Source
General
Policies/
Environment
(continued)
Labor
Freedom
A quantitative measure that reflects various aspects of the
legal and regulatory framework of a country’s labor market.
It provides cross-country data on regulations concerning
minimum wages, laws inhibiting layoffs, severance requirements,
and measurable regulatory burdens on hiring, hours,
and so on.
Heritage Foundation 2014 Index of Economic
Freedom (based on data from the World Bank’s
Doing Business Report) (http://www.heritage.
org/index/labor-freedom)
Financial
Freedom
A measure of banking efficiency as well as a measure of
independence from government control and interference in
the financial sector. The index is scored between 0 and 100
in such a way that a value of 100 means negligible government
influence (more freedom) and 0 means repressive.
Heritage Foundation 2014 Index of Economic
Freedom (http://www.heritage.org/index/
financial-freedom)
Globalization
Policies
Enabling
Trade Index
An index that assesses the extent to which economies have
in place institutions, policies, infrastructures, and services
facilitating the free flow of goods over borders and to their
destination. This set of trade-enabling factors are organized
in four main categories: market access, border administration,
infrastructure, and operating environment.
The Global Enabling Trade Report 2014 from
the World Economic Forum (http:// members.
weforum.org/en/initiatives/gcp/GlobalEnabling-
TradeReport/index.htm)
Tariffs
(Weighted
mean applied)
Average of effectively applied rates weighted by the product
import shares corresponding to each partner country.
World Development Indicators from World
Bank (http://databank.worldbank.org/ddp/
home.do)
Capital
Account
Openness
The Chinn-Ito Index (KAOPEN) is an index that measures
a country’s degree of de jure capital account openness.
The index was initially introduced in Chinn and Ito (Journal
of Development Economics, 2006). KAOPEN is based on
the binary dummy variables that codify the tabulation of
restrictions on cross-border financial transactions reported
in the IMF’s Annual Report on Exchange Arrangements and
Exchange Restrictions (AREAER). The version of the index
used here is normalized to range between zero and one.
A higher score means a more open country.
Chinn, Menzie D. and Hiro Ito (2006). “What
Matters for Financial Development Capital
Controls, Institutions, and Interactions,”
Journal of Development Economics, Volume 81,
Issue 1, Pages 163–192 (October). (http://web.
pdx.edu/~ito/Chinn-Ito_website.htm)
Visa Free
Travel
(Outward)
An index that scores each country or territory according to
the number of other countries that its citizens can travel to
without having to obtain a visa.
The Henley & Partners Visa Restrictions Index
2014 (https://www.henleyglobal.com/international-visa-restrictions/)
Visa Free
Travel
(Inward)
The visa requirements component of the World Economic
Forum Travel & Tourism Competitiveness Index. It is scored
for each destination country according to the number of
countries whose citizens are exempt from obtaining a visa
[= 1.0] to visit that country, able to obtain one upon arrival
[= 0.70], or obtain an electronic visa [= 0.50] out of all UN
countries.
The Travel & Tourism Competitiveness Report
2013 from the World Economic Forum
(http://www3.weforum.org/docs/WEF_TT_
Competitiveness_Report_2013.pdf)