THE IRRESISTIBLE EASE OF MAKING AN INDEX: WHAT WE LEARN FROM NGI?

Abstract

There is a number of indices measuring globalization processes. Started with OECD/Eurostat, (the OECD`s glossary from 2002 is defining globalization as increasing internationalization of markets for goods and services, the means of production, financial systems, competition, corporations, technology and industries) , the phenomenon inspired other intellectual circles. AT Kearny composite index is measuring the economic globalization, political and social).This project was followed by KOF Index , whose main author is Axel Dreher (Dreher et al, 2010) who identified the difference between the extent of the process within small and big countries. Main components are including economic globalization, political globalization and the flow of information and people. MGI (Maastricht Globalization Index), which followed the process of globalization indices creation, is focusing on four dimensions: technological, ecological. economic, and socio-cultural (Figge at Martens, 2016) That was for the first time that the eco dimension became a part of the globalization index. The NGI, created as an individual intellectual product of P. Vujakovic , added a new approach distinguishing the countries which are mostly trading and having social relations with their first neighbors and those who have relations worldwide (concerning them fully globalized). But , the problem of globalization is bringing a number of new consideration , having in mind the role of ICT , the digital “nomads” , or , the opposite processes , now stronger then before, of new protectionism. The paper is focusing on the contribution of the New Globalization Index in understanding the results and effects of the globalization process in Serbia. The analyses shows that the indices as the NGI and the other could be successfully used in the economic researches, thanks to their transparent way of identification of the results based on quantitative methodology that is used. It is important to underline that the process is going on supplying the research community with new improvements of these products or replacing them with more sophisticated once.