Globalization Report 2016 – Wealthy industrialized countries benefit more from globalization than emerging economies

01/09/2016

Bertelsmann Stiftung (Sept. 2016)

The "Globalization Report 2016" examines how far individual countries benefited from increasing globalization between 1990 and 2014. Using the real gross domestic product (GDP) per capita as indicator for measuring these benefits, industrialized countries such as Japan, Germany, Switzerland and Finland achieved the largest gains from increased globalization. Thus, wealthy industrialized nations benefit the most from increasing globalization. Emerging markets such as China, India and Brazil also had a higher GDP per capita due to globalization. However, their globalization-induced increases in GDP are much lower. The lowest gains brought about by globalization were to be found in the so-called BRIC countries. In terms of GDP, Brazil, Russia, China and worst-performer India did benefit from globalization as a whole, but to a much lesser extent than the industrialized nations did. Their average GDP increases ranged from 120 euros per capita and year (Brazil) to 20 euros per capita and year (India). According to the director of the study, Thieß Petersen, the poor performance of emerging nations is partly due to existing trade restrictions, but partly also to macro-economic conditions. In order to revitalize stagnating globalization, the experts at the Bertelsmann Stiftung believe it is necessary to improve the integration of emerging and developing countries into the global economy. It is precisely these countries that still have great globalization potential and could therefore generate correspondingly high globalization-related growth effects. To achieve this, it is important that industrialized nations open up their markets to products from less developed countries, reduce their subsidies for agricultural products and provide financing opportunities. This would allow emerging countries to finance the necessary infrastructure, educational measures and production facilities. " LINK

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