Skip to main content
Log in

From outside to hyper-globalisation: an Artificial Neural Network ordinal classifier applied to measure the extent of globalisation

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

Globalisation has become a key concept in the social sciences to understand the accelerating changes occurred in modern societies during recent decades. As a consequence, measuring the influence of globalisation on the economic, social and political aspects of nations has been a requirement. There are many indices at present to calculate the extent of globalisation reached by each country. However, most of the methods used to build those indices suffer certain methodological limitations that hinder the wider dissemination and usefulness of their results. As an alternative, in this paper, we propose a methodology for ordinal ranking of countries associated with their globalisation level, which gives us an easier and more useful information about the different levels where countries are regarding to this criteria. Among Computational Intelligence techniques, Artificial Neural Networks (ANNs) have become dominant modelling paradigm. We have built a novel non-linear ordinal classifier by combining the Proportional Odd Models (POM) with ANNs that is able to classify countries according to their level of globalisation in six classes, which range from hyperglobalised countries to countries that remain outside the process of globalisation. The results could not be more encouraging. Our experiments yield robust results and show better outcomes than alternative linear and non-linear ordinal classifiers, which raises the possibility of developing a model of classification that might overcome some of the limitations of the indices currently employed to measure globalisation.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Notes

  1. See http://globalisation.kof.ethz.ch/papers/ for an extensive list of articles using the index.

  2. It must be noted that, sometimes, rating techniques have been accused to dull the provocative effect of ranking (Roodman 2008). However, after 10 years of development of a dozen indices of globalisation and no one finding real dissemination at social or political levels, it could be the right moment to try a new focus. Classifications techniques can also provide clear and swift information to policy and decision makers, helping countries as well in the search for strategic allies in the international arena.

  3. http://www.uco.es/ayrna.

References

  • Baccianella, S., Esuli, A., Sebastiani, F.: Evaluation measures for ordinal regression. In: Proceedings of the Ninth International Conference on Intelligent Systems Design and Applications (ISDA 09), Pisa, Italy (2009)

  • Beck, U.: The cosmopolitan perspective: sociology of the second age of modernity. Brit. J. Sociol. 51(1), 79–105 (2000)

    Article  Google Scholar 

  • Bednárová, P., Kocourek, A., Laboutková, S.: An analytic study on internal linkages between human development and globalization. J. Mod. Acc. Audit. 8(12), 1823–1837 (2012)

    Google Scholar 

  • Bergh, A., Karlsson, M.: Government size and growth: accounting for economic freedom and globalization. Public Choice 142(1–2), 195–213 (2010)

    Article  Google Scholar 

  • Bergh, A., Nilsson, T.: Good for living? On the relationship between globalization and life expectancy. World Dev. 38(9), 1191–1203 (2010)

    Article  Google Scholar 

  • Bishop, C.M.: Improving the generalization properties of radial basis function neural networks. Neural Comput. 8, 579–581 (1991)

    Article  Google Scholar 

  • Callejón, A.M., Casado, A.M., Fernández, M.A., Peláez, J.I.: A system of insolvency prediction for industrial companies using a financial alternative model with neural networks. Int. J. Comput. Intell. Syst. 6(1), 29–37 (2013)

    Article  Google Scholar 

  • Caselli, M.: On the Nature of Globalization and Its Measurement. Some Notes on the A.T. Kearney/Foreign Policy Magazine Globalization Index and the CSGR Globalisation Index. Working Papers O-2006/3. UNU-CRIS, Brugge (2006)

  • Caselli, M.: Measuring what? Notes on some globalization indices. Globalizations 5(3), 383–404 (2008)

    Article  Google Scholar 

  • Caselli, M.: Globalization indices based on states: a comparison and some criticisms. In: Caselli, M. (ed.) Trying to Measure Globalization: Experiences, Critical Issues and Perspectives, pp. 97–120. Springer, New York (2012)

    Chapter  Google Scholar 

  • Castro, L.N., Hruschka, E.R., Campello, R.J.G.B.: An evolutionary clustering technique with local search to design rbf neural network classifiers. In: Proceedings of the IEEE International Joint Conference on Neural Networks, pp. 2083–2088 (2004)

  • Chaudhuri, A., De, K.: Fuzzy support vector machine for bankruptcy prediction. Appl. Soft Comput. 11(2), 2472–2486 (2008)

    Article  Google Scholar 

  • Chauvin, Y., Rumelhart, D.E.: Backpropagation: Theory, Architectures, and Applications. Lawrence Erlbaum Associates, Mahwah (1995)

    Google Scholar 

  • Chen, J.H., Fang, Y.P.: A study on the modified components of Asian currency unit: an application of the artificial neural network. Qual. Quant. 45(2), 329–347 (2011)

    Article  Google Scholar 

  • Chu, W., Ghahramani, Z.: Gaussian processes for ordinal regression. J. Mach. Learn. Res. 6, 1019–1041 (2005)

    Google Scholar 

  • Chu, W., Keerthi, S.S.: Support vector ordinal regression. Neural Comput. 19(3), 792–815 (2007)

    Article  Google Scholar 

  • Cohen, S., Intrator, N.: A hybrid projection-based and radial basis function architecture: initial values and global optimisation. Pattern Anal. Appl. 5, 113–120 (2002)

    Article  Google Scholar 

  • Cortes, C., Vapnik, V.: Support-vector networks. Mach. Learn. 20(3), 273–297 (1995)

    Google Scholar 

  • Donoho, D.: Projection-based approximation and a duality with kernel methods. Ann. Stat. 5, 58–106 (1989)

    Article  Google Scholar 

  • Dorado-Moreno, M., Gutiérrez, P.A., Hervás-Martínez, C.: Ordinal classification using hybrid artificial neural networks with projection and kernel basis functions. In: 7th International Conference on Hybrid Artificial Intelligence Systems (HAIS2012), pp. 319–330 (2012)

  • Dreher, A.: Does globalization affect growth? Evidence from a new index of globalisation. Appl. Econ. 38(10), 1091–1110 (2006)

    Article  Google Scholar 

  • Dreher, A., Gaston, N.: Has globalization increased inequality. Rev. Int. Econ. 16(3), 516–536 (2008)

    Article  Google Scholar 

  • Dreher, A., Sturmand, J.E., Ursprung, H.W.: The impact of globalization on the composition of government expenditures: evidence from panel data. Public Choice 134(3–4), 263–292 (2008)

    Article  Google Scholar 

  • Dreher, A., Gaston, N., Martens, P.: Measuring Globalisation: Gauging Its Consequences. Springer, New York (2008)

  • Easterly, W.: Channels from globalization to inequality: productivity world versus factor world. In: Collins, S., Graham, C. (eds.) Brookings Trade Forum 2004: Globalization, Poverty, and Inequality, pp. 39–81. The Brookins Institution, Washington (2004)

    Google Scholar 

  • Ebenthal, S.: Messung von Globalisierung in Entwicklungslndern: Zur Analyse der Globalisierung mit Globalisierungsindizes. Berichte aus dem Weltwirtschaftlichen Colloquium der Universitt Bremen, 105. IWIM, Bremen (2007)

  • Fletcher, R., Reeves, C.M.: Function minimization by conjugate gradients. Comput. J. 7, 149–154 (1964)

    Article  Google Scholar 

  • Friedman, T.L.: The Lexus and the Olive Tree: Understanding Globalization. MacMillan, New York (2000)

    Google Scholar 

  • Giddens, A.: The Consequences of Modernity. Cambridge Polity Press, Cambridge (1990)

    Google Scholar 

  • Guo, H., Diao, F., Zhu, K., Li, J., Xing, Y.: Soft computing system for bank performance prediction. A new method of soft computing to estimate the economic contribution rate of education in China. Appl. Soft Comput. 8(1), 499–506 (2008)

    Article  Google Scholar 

  • Gutiérrez, P.A., Hervás-Martínez, C., Carbonero-Ruz, M., Fernandez, J.C.: Combined projection and kernel basis functions for classification in evolutionary neural networks. Neurocomputing 27(13–15), 2731–2742 (2009)

    Article  Google Scholar 

  • He, Y., Liao, N., Liu, H., Zhong, Y.: A new method of soft computing to estimate the contribution rate of S&T progress on economic growth. Appl. Soft Comput. 12(6), 1801–1809 (2008)

    Article  Google Scholar 

  • Held, D.: Global Transformations: Politics, Economics and Culture. Stanford University Press, Stanford (1999)

    Google Scholar 

  • Heshmati, A.: Measurement of a multidimensional index of globalization. Glob. Econ. J. 6(2), 1–28 (2006)

    Google Scholar 

  • Ishibuchi, H., Yoshida, T., Murata, T.: Balance between genetic search and local search in hybrid evolutionary multi-criterion optimization algorithms. IEEE Trans. Evol. Comput. 7(2), 204–223 (2003)

    Article  Google Scholar 

  • Kearney, A.T.: The carnegie endowment for international peace. Globalizations last hurrah? Foreign Policy January–February, 38–51 (2002)

  • Keohane, R.O., Nye, J.S.: Introduction. In: Nye, J., Donahue, J.D. (eds.) Governance in a Globalizing World, pp. 1–44. Brookins Institution Press, Washington (2000)

    Google Scholar 

  • Koza, J.R., Rice, J.P.: Genetic generation of both the weights and architecture for a neural network. In: Proceedings of International Joint Conference on Neural Networks, vol. 2, pp. 397–404. IEEE Press, Seattle (1991)

  • Lee, S.H., Hou, C.L.: An art-based construction of RBF networks. IEEE Trans. Neural Netw. 13(6), 1308–1321 (2002)

    Article  Google Scholar 

  • Li, L., Lin, H.T.: Ordinal regression by extended binary classification. Adv. Neural Inf. Process. Syst. 19, 865–872 (2007)

    Google Scholar 

  • Lickert, R.: A technique for the measurement of attitudes. Arch. Psychol. 22(140), 1–55 (1932)

    Google Scholar 

  • Lin, W.B.: Antecedents of employee involvement with the comparative model. Qual. Quant. 44(3), 459–482 (2010)

    Article  Google Scholar 

  • Lin, W.B.: Factors affecting high-involvement product purchasing behavior. Qual. Quant. 47(6), 3113–3133 (2013)

    Article  Google Scholar 

  • Lind, N.: A calibrated index of human development. Soc. Indicators Res. 98(2), 301–319 (2010)

    Article  Google Scholar 

  • Lippmann, R.P.: Pattern classification using neural networks. IEEE Trans. Neural Netw. 27, 47–64 (1989)

    Google Scholar 

  • Lombaerde, P.D., Iapadre, P.L.: The world is not flat. World Econ. 9(4), 159–180 (2008)

    Google Scholar 

  • Martens, P., Zywietz, D.: Rethinking globalisation: a modified globalisation index. J. Int. Dev. 18, 331–350 (2006)

    Article  Google Scholar 

  • Martens, P., Dreher, A., Gaston, N.: Globalisation, the global village and the civil society. Futures 42(6), 574–582 (2010)

    Article  Google Scholar 

  • Martínez-Estudillo, A.C., Martínez-Estudillo, F.J., Hervás-Martínez, C., García, N.: Evolutionary product unit based neural networks for regression. Neural Netw. 19(4), 477–486 (2006)

    Article  Google Scholar 

  • McGillivray, M.: Commitment to Development Index: A Critical Appraisal. AusAid, Canberra (2003)

    Google Scholar 

  • Mishra, S.K.: A comparative study of trends in globalization using different synthetic indicators. MPRA Paper No. 38028. MPRA, Munchen (2012)

  • Nikitin, P.V., Elliott, J.E.: Freedom and the market (an analysis of the anti-globalisation movement from the perspective of the theoretical foundation of the evaluation of the dynamics of capitalism by Palanyi, Hayek and Keynes). Forum Soc. Econ. 30(1), 1–16 (2000)

    Article  Google Scholar 

  • ORourke, K.H., Williamson, J.G.: Globalization and History: The Evolution of a Nineteenth Century Atlantic Economy. The MIT Press, Boston (1999)

    Google Scholar 

  • Pérez-Ortiz, M., Cruz-Ramírez, M., Ayllon-Terán, M.D., Heaton, N., Ciria, R., Hervás-Martínez, C.: An organ allocation system for liver transplantation based on ordinal regression. Appl. Soft Comput. 7(2), 275–284 (2013)

  • Potrafke, N.: Did globalization restrict partisan politics? An empirical evaluation of social expenditures in a panel of oecd countries. Public Choice 140(1–2), 105–124 (2009)

    Article  Google Scholar 

  • Potrafke, N.: Labor market deregulation and globalization: empirical evidence from OECD countries. Rev. World Econ. 146(3), 545–571 (2010)

    Article  Google Scholar 

  • Potrafke, N.: Globalization and labor market institutions: international empirical evidence. J. Comp. Econ (2013). doi:10.1109/TSMCB.2005.860138

  • Ravi, V., Kurniawan, H., Thai, P.N.K., Kumar, P.R.: Soft computing system for bank performance prediction. Appl. Soft Comput. 8(1), 305–315 (2008)

    Article  Google Scholar 

  • Robertson, R.: Globalization: Social Theory and Global Culture. Sage, London (1992)

    Google Scholar 

  • Robertson, R.: The Three Waves of Globalization: A History of a Developing Global Consciousness. Zed Books Ltd., London (2003)

    Google Scholar 

  • Roodman, D.: A tale of two indices: the commitment to development index as a model for the Humanitarian response index. In: Associates, D.A.R. (ed.) The Humanitarian Response Index 2008: Donor Accountability in Humanitarian Action, pp. 65–74. Palgrave, Washington (2008)

    Google Scholar 

  • Samimi, P., Lim, G.C., Buang, A.: Globalization measurement: notes on common globalization indexes. J. Knowl. Manag. Econ. Inf. Technol. 1(7), 1–20 (2011)

    Google Scholar 

  • Sánchez-Monedero, J., Campoy-Muñoz, P., Gutiérrez, P., Hervás-Martínez, C.: A guided data projection technique for classification ofsovereign ratings: the case of European Union 27. Appl. Soft Comput. 22, 339–350 (2014)

    Article  Google Scholar 

  • Schmitt, M.: On the complexity of computing and learning with multiplicative neural networks. Neural Comput. 14, 241–301 (2001)

    Article  Google Scholar 

  • Scholte, J.: Globalization—A Critical Introduction. MacMillan Press, London (2000)

    Google Scholar 

  • Sianes, A., Dorado-Moreno, M., Hervás-Martínez, C.: Rating the rich: an ordinal classification to determine which rich countries are helping poorer ones the most. Soc. Indicators Res. 116(1), 47–65 (2013)

    Article  Google Scholar 

  • Soysa, I.D., Vadlamannati, K.C.: Does being bound together suffocate, or liberate? The effects of economic, social, and political globalization on human rights, 1981–2005. Kyklos 64(1), 20–53 (2011)

    Article  Google Scholar 

  • Spich, R.: Globalization folklore: problems of myth and ideology in the discourse on globalization. J. Organ. Change Manag. 8(4), 6–29 (1995)

    Article  Google Scholar 

  • Stapleton, L.M., Garrod, G.D.: Keeping things simple: why the human development index should not diverge from its equal weights assumption. Soc. Indicators Res. 84(2), 179–188 (2007)

    Article  Google Scholar 

  • Tallón-Ballesteros, A.J., Hervás-Martínez, C.: A two-stage algorithm in evolutionary product unit neural networks for classification. Expert Syst. Appl. 38(1), 743–754 (2011)

    Article  Google Scholar 

  • Tsai, M.C.: Does globalization affect human well-being? Soc. Indicators Res. 81(1), 103–126 (2007)

    Article  Google Scholar 

  • Wang, Y.H.: Using neural network to forecast stock index option price: a new hybrid garch approach. Qual. Quant. 43(5), 833–843 (2009)

    Article  Google Scholar 

  • Wolf, M.: Will the nation-state survive globalization? Foreign Affairs 80(1), 178–190 (2001)

    Article  Google Scholar 

  • Yao, X., Liu, Y.: A new evolutionary system for evolving artificial neural networks. IEEE Trans. Neural Netw. 8(3), 694–713 (1997)

    Article  Google Scholar 

Download references

Acknowledgments

This work has been partially subsidised by the TIN2011-22794 project of the Spanish Ministry of Economy and Competitiveness (MINECO), FEDER funds and the P2011-TIC-7508 project of the “Junta de Andalucía” (Spain).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Manuel Dorado-Moreno.

Appendix

Appendix

See Table 7.

Fig. 2
figure 2

Classification of all the countries in the database

Table 5 Composition of the KOF Index of globalisation, 2012 edition
Table 6 Countries corresponding to their classes
Table 7 For 147 countries
Table 8 Ranking given by the HANNPOM model compared to the theoretical one

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Dorado-Moreno, M., Sianes, A. & Hervás-Martínez, C. From outside to hyper-globalisation: an Artificial Neural Network ordinal classifier applied to measure the extent of globalisation. Qual Quant 50, 549–576 (2016). https://doi.org/10.1007/s11135-015-0163-7

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-015-0163-7

Keywords

Navigation