DHL Global Connectedness Index 2014

DHL Global Connectedness Index 2014
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Figure 2.6
Regional Average Scores
Global Connectedness
Dimensions
Depth
Breadth
Trade
Pillars
Capital
Information
People
0 10 20 30 40 50 60 70 80
Europe North America East Asia & Pacific Middle East & North Africa
South & Central America, Caribbean South & Central Asia Sub-Saharan Africa
Europe is the world’s most globally connected region, followed by North America and East Asia & Pacific. Europe leads on the trade and people pillars,
and North America leads on the capital and information pillars.
specifically from 132 nd to 81 st on the breadth of its merchandise
exports. In 2011, Burundi’s three largest export destinations
(Switzerland, the United Kingdom, and Belgium)
accounted for 59% of its total exports. In 2013, its top three
destinations (Germany, Pakistan, and the Republic of the
Congo) accounted for only 32%.
Mozambique, the country with the second largest increase,
increased both the depth and the breadth of its global connectedness,
particularly on the trade pillar. Its trade pillar
rank rose from 85 th in 2011 to 58 th in 2013. Within that pillar,
the most dramatic change was a doubling of the depth
of its services exports from 5% of GDP to 10%. Jamaica, the
country with the third largest gain in global connectedness
reversed a trend of continuously declining connectedness
from 2006 to 2011. Its gains were driven by breadth on the
trade pillar. The proportion of Jamaica’s exports destined
for countries outside its region increased from 6% in 2011
to 11% in 2013.
Ukraine’s large increase in global connectedness from 2011
to 2013 (7 th in absolute terms based on scores and tied for
1 st in relative terms based on ranks) has probably already
been reversed, at least in part, by the turmoil that country
has faced in 2014. Ukraine’s gains between 2011 and 2013
were driven by increases in the breadth of its merchandise
imports and the depth of its inward portfolio equity flows
and stocks. The proportion of Ukraine’s merchandise
imports coming from Russia fell from 35% in 2011 to 30%
in 2013 (half of which was made up for by China’s rising
share of Ukraine’s imports). While Ukraine’s trade breadth
may increase further due to deteriorating relations with
Russia, its trade depth will likely fall. During the first six
months of 2014, Ukraine’s merchandise exports declined
5% and its merchandise imports declined 18% versus the
first six months of 2013. 7 And Ukraine’s large net capital
inflows in recent years have turned to net outflows. Ukraine
suffered $2.3 billion of capital outflows during the first six
months of 2014. 8
The countries with the largest absolute declines in global
connectedness were, starting with the largest decline,
Syrian Arab Republic, Papua New Guinea, Malta, Islamic
Republic of Iran, Cameroon, Zimbabwe, Kazakhstan,
Uzbekistan, Namibia, and Estonia. Syria’s decline from
the 122 nd rank in 2011 to last (140 th ) in 2013 extended a
declining trend reaching back at least to 2005, the first
year for which the DHL Global Connectedness Index was
calculated. In 2005, Syria ranked 90 th , implying that 35% of
countries around the world in our sample were less connected
than Syria; now none are less connected, a powerful
illustration of how swiftly a country’s international ties can
deteriorate when an internal conflict is paired with external
condemnation and economic sanctions. Presumably, the