Has the world economy reached its globalization limit?

TL;DR

This paper investigates the extent of global economic integration by analyzing macroeconomic indices and network structures, revealing a peak in globalization around 2000 followed by signs of deglobalization.

Contribution

It introduces an entropy-based measure to characterize globalization and provides empirical evidence of a globalization peak and subsequent deglobalization trend.

Findings

Globalization peaked between 1970-2000.

A deglobalization trend has emerged more recently.

Entropy Manhattan distance effectively captures globalization dynamics.

Abstract

The economy globalization measure problem is discussed. Four macroeconomic indices of twenty among the "richest" countries are examined. Four types of "distances" are calculated.Two types of networks are next constructed for each distance measure definition. It is shown that the globalization process can be best characterised by an entropy measure, based on entropy Manhattan distance. It is observed that a globalization maximum was reached in the interval 1970-2000. More recently a deglobalization process is observed.