24.01.2015 Views

DHL Global Connectedness Index 2014

DHL Global Connectedness Index 2014

DHL Global Connectedness Index 2014

SHOW MORE
SHOW LESS
  • No tags were found...

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>DHL</strong> <strong>Global</strong> <strong>Connectedness</strong> <strong>Index</strong> <strong>2014</strong><br />

71<br />

Econometric analysis has shown that many of these CAGE<br />

differences significantly inhibit the types of international<br />

interactions covered in the <strong>DHL</strong> <strong>Global</strong> <strong>Connectedness</strong><br />

<strong>Index</strong>. Focusing again on the most obvious difference<br />

between advanced and emerging economies, all else equal,<br />

halving the per-capita income disparity between countries<br />

(e.g., shifting from a disparity such as that between<br />

France and Mexico to that between France and Portugal)<br />

is associated with more than 30% higher portfolio equity<br />

investment, roughly 20% greater FDI, and 10% more tourist<br />

arrivals. 17 The greater geographic distance, on average,<br />

between advanced economies and emerging economies is<br />

also a structural barrier to a rapid realignment of advanced<br />

economies’ international interactions. The average distance<br />

from advanced economies to emerging economies is<br />

7,724 km, more than 40% greater than the average distance<br />

between advanced economies.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!