Kui-Wai Li, Iris A.J. Pang and Michael C.M. Ng
This paper employs a total of thirty four openness factors and indigenous factors to construct two indicators for 62 world economies for the period 1998-2002. While most globalisation studies concentrated on openness factors, regression estimates and simulation studies show that sound performance in indigenous factors are crucial to an economy's growth and globalisation. Empirical evidence shows that an optimal performance in indigenous factors can be identified, and that successful globalised economies are equipped with strong performance in their indigenous factors.
Globalisation, indigenous factors, openness, world economies.
We would like to thank Barbara Stallings, Neantro Saavedra-Riviano, Gianluca F. Grimalda, Peter J. Newell, participants in the APEC Study Center Consortium annual meeting in Ho Chi Minh City, Vietnam, in May 2006, and two anonymous referees for their comments on the earlier version of the paper. We are grateful to the funding support from the Faculty of Business, City University of Hong Kong. The authors are solely responsible for the remaining errors.
Department of Economics and Finance, City University of Hong Kong
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