DHL Global Connectedness Index 2014
DHL Global Connectedness Index 2014
DHL Global Connectedness Index 2014
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50 3. The Depth of <strong>Global</strong> <strong>Connectedness</strong><br />
Figure 3.8 FDI Outward Stock as Percentage of<br />
World GDP, 1913 – 2013 31<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
1910 1930 1950 1970 1990 2010<br />
FDI outward stocks as a percentage of world GDP were larger in 2013<br />
than in any other year they were measured as far back as 1910.<br />
international connectivity rather than actual international<br />
communications. It is included in the <strong>DHL</strong> <strong>Global</strong> <strong>Connectedness</strong><br />
<strong>Index</strong> as a proxy for international internet<br />
traffic because data on the latter are not available on a<br />
country-by-country basis. However, the international share<br />
of internet traffic on a global basis is estimated at roughly<br />
17%. 32 The explosive growth of international internet bandwidth<br />
has not been accompanied by a similar rise in the<br />
international share of internet traffic.<br />
Analyses of social network traffic indicate that while the<br />
internet is a global network, it is used primarily to transmit<br />
information within national borders. A published<br />
estimate indicates that only 16% of Facebook friends are<br />
located across national borders, 33 and newer unpublished<br />
research points toward an even lower share, only 10%–15%.<br />
Just because we are notionally able to befriend anyone,<br />
anywhere, anytime on Facebook doesn’t mean we will:<br />
the technology is being superimposed on a “social graph,”<br />
which already exists and conforms closely to physical and<br />
political geography. Thus, researchers have concluded that<br />
Facebook has a “strongly modular network structure at the<br />
scale of countries.” 34<br />
Information flows on Twitter are more international than<br />
those on Facebook, with an estimated 25% of Twitter followers<br />
located in different countries from the people they follow.<br />
Nonetheless, only 14% of followers are located in a foreign<br />
country that doesn’t share the same dominant language. 35<br />
Followers who re-tweet a user’s tweets are also more likely to<br />
be domestic than followers who do not re-tweet. 36<br />
Research on other forms of communication over the internet<br />
also backstops the conclusion that people primarily<br />
use the internet to communicate domestically rather than<br />
across international borders. A study of instant messages<br />
on MSN Messenger showed that users who communicated<br />
with each other were 16 times more likely to be in the<br />
same country (and 27 times more likely to speak the same<br />
language) than users who did not. 37 Email exchanges on<br />
Yahoo Mail are also significantly more intense among users<br />
who are geographically proximate and share cultural ties. 38<br />
Turning to the other components of the information pillar,<br />
the depth of international telephone call minutes also rose<br />
dramatically from 2005 to 2012 (2013 data were not available<br />
as of this writing). The depth of international telephone<br />
call minutes is measured here in minutes per capita<br />
because the preferable normalization (international share<br />
of total minutes) is not available on a country-by-country<br />
basis. Nonetheless, on a global basis, the international<br />
share of total telephone calling minutes is roughly 2% over<br />
standard telephone lines and 3%–4% including calls placed<br />
over the internet. 39<br />
The data used in this report to calculate the depth of international<br />
telephone calls include both calls placed over fixed<br />
and mobile telephone networks (TDM traffic) as well as<br />
calls that are routed over the internet (VoIP traffic) but terminate<br />
on fixed or mobile telephone networks (such as calls<br />
from Skype to fixed and mobile phones). However, they do<br />
not include computer-to-computer calls (e.g., Skype-to-<br />
Skype calls). In 2012, Skype-to-Skype calls accounted for<br />
about one quarter of all international calling minutes. 40<br />
These are excluded from the index because country-bycountry<br />
data are not available on such calls.<br />
On average, people spoke on international telephone calls<br />
for 152 minutes during 2012, up from 88 minutes in 2005<br />
(doubling the number of outbound minutes shown in Figure<br />
3.9 to account for time people spend on both outbound<br />
and inbound calls). While these figures do reflect very substantial<br />
growth (8% CAGR over 2005–2012), they indicate