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* University of Banja Luka, Faculty of Economics, jelena.tesic@efbl.org

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MEASURING GLOBALIZATION IN THE CONTEXT OF TRANSITION PROCESS - THE CASE OF WESTERN BALKAN COUNTRIES

ABSTRACT

There is no widely accepted definition or methods for measuring globalization and it is one of the most debatable phenomena in recent human history. The focus of this paper is, therefore, on globalization and methods of its measurement. The issue of measuring globalization inevitably involves numbers, and with the numbers one should always be careful, especially when dealing with something so complex and undefined. Also, the interpretation of results obtained by measuring globalization always requires additional interpretation. In this paper we examine the methods of measuring globalization from the macro aspect, i.e. at the level of countries, as well as the analysis of level of globalization in Western Balkan countries. As there is still an ongoing transition process in these countries, the application of globalization indices must be assessed in the overall context and complexity of transition process. The ultimate aim of this paper is to determine how to read and interpret globalization indices (indicators), and their informative power, as well as shortages in the case of transition countries such as the Western Balkans. Our results indicate that Western Balkan countries are not making sufficient progress in the transition process and they are thus not competitive. Therefore, a high degree of globalization does not imply that our countries a priori obtain the positive effects of globalization. We will try to define which additional indicators should be used when interpreting indicators of globalization for the countries of the region. The rationale behind

this endeavor is the fact that the process of globalization and the process of transition present two interrelated processes for the countries of the region.

Keywords:

JEL classification

1. INTRODUCTION

Economist

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2. HOW TO MEASURE GLOBALIZATION: REVIEW OF THE PREVIOUS RESEARCHES

Handbook on Globalization

Measuring Globalization

World Investment Report Trade and Development Report

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3. LEVEL OF GLOBALIZATION OF WESTERN BALKAN COUNTRIES

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Source: KOF Swiss Economic Institute, KOF Globalization Index http://globalization. kof.ethz.ch/query/ (accessed 15 November 2011)

4. RESEARCH METHODOLOGY

4.1 Research problem and research hypothesis

problem

The hypothesis

a priori

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4.2 Hypothesis testing

EnterprisesMarkets and

TradeFinancial InstitutionsInfrastructure

Source: European Bank for Reconstruction and Development, EBRD Transition Report 2010, Recovery and Reform, http://www.ebrd.com/downloads/research/transition/tr10.pdf (accessed 12 January 2012)

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The

Source: Kaufmann et all (2011), Aggregate Governance Indicators 1996-2010, http://info.worldbank.org/governance/wgi/index.asp (accessed 13 January 2012)

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Worldwide Governance IndicatorsGlobal Competitiveness Index

Property Rights

Domestic competition

Effectiveness of anti monopoly policy

Source: World Economic Forum, Global Competitiveness Report 2011-2012, Global Competitiveness Index Analyzer, http://gcr. weforum.org/gcr2011/ (accessed 14 January 2012)

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5. FINDINGS AND DISCUSSION

Source: World Economic Forum, Global Competitiveness Report 2011-2012, http://www3.weforum.org/docs/WEF_GCR_Report_2011-12.pdf (accessed 17 January 2012)

- process of transition

- institutional environment

- competition

- competitiveness

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a priori

6. CONCLUSION

a priori

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