DHL Global Connectedness Index 2014

66 4. The Breadth of Global Connectedness
Figure 4.9
Distance (average kilometers traversed) by Component, 2005 versus 2013 (or most recent)
8,000
E
E
7,000
6,000
5,000
4,000
3,000
2,000
E E
A
A
E
E
A A
A E A E
E
A
E E A A
AE E A
A
E
A A E
E
A A
A A E E
E
A A A A
E
E
A A A A
E
E E
E E
A A
E
E
E E
A A
1,000
0
Merchandise Exports
Merchandise Imports
FDI Outward Stocks
FDI Inward Stocks
FDI Outflows
FDI Inflows
Portfolio Equity Outward Stocks
Phone Calls Outward
Phone Calls Inward
Printed Publications Exports
Printed Publications Imports
Emigration
Immigration
Students Incoming
Trade Capital Information People
Tourist Arrivals
2005 2013 or Most Recent A Advanced Economies Only E Emerging Economies Only
The average distance traversed by all of the flows and stocks measured in the index increased between 2005 and 2013.
Distance Up and Regionalization Down Across All
Components
Declining breadth and concentration have been accompanied
by a consistent trend across components toward
international interactions taking place over greater
distances (and a falling share taking place within regions),
as shown on Figures 4.9 and 4.10. The average distance
traversed by every one of the types of flows covered in this
study has increased since 2005, and the average proportion
taking place within regions of every type declined. This
section will address both of these closely related geographic
measures of the globalization of countries’ international
interactions.
The rising distance traversed by international interactions
and their declining regionalization has been driven
primarily by countries’ changing shares of world total
interactions. If countries’ shares of world totals are held
constant—as shown by the dotted lines on Figure 4.4—the
recent changes in average distance and regionalization
almost disappear. Why do shifting shares explain more of
the changes in geographic measures of distribution than
they do for breadth and concentration Distinct geographic
and policy characteristics of emerging economies point
toward possible explanations.
Emerging economies are typically located farther away
from other large economies. The average distance between
two randomly selected advanced economies is 5,420 km,
as compared to 8,250 km between two randomly selected
emerging economies. Emerging economies also average
63% higher remoteness scores than advanced economies,
using the remoteness measure described in Chapter 2 and
reported for each country in the country profiles. And
emerging economies have not, in general, built up the
same level of intra-regional policy integration as advanced
economies. Two randomly selected advanced economies
are more than 25 times more likely to be connected via a
regional trade bloc than two randomly selected emerging
economies. These distinctions presumably amplify the geographic
changes associated with the rising share of interactions
involving emerging economies.
The rich historical data available on geographic patterns
of merchandise trade enables more detailed examination
of trends on that component. Figure 4.11 reveals that the