DHL Releases Study on Free Trade

A detailed country-by-country analysis of the flows that connect the world indicates that globalization is still not as advanced as most people believe, and that continued economic integration could spur global gross domestic product gains of five percent or more.??

So says the Global Connectedness Index (GCI), a study released by DHL. GCI ranks 125 countries according to the depth and breadth of their integration into the world economy and also examines the relationship between global connectedness and welfare. The study documents that global connectedness has enormous room to expand, even among the most “connected” countries.??

The study was unveiled last week against the backdrop of the APEC CEO Summit in Honolulu, a global summit where heads of state and business leaders meet annually to discuss international economic issues. The study was commissioned by DHL and conducted by global business strategist and economist Pankaj Ghemawat, professor of global strategy at the IESE Business School, Barcelona.??

“This research provides evidence that a connected world is a better world, in terms of global welfare and individual development. The free trade of products and services contributes significantly to global prosperity,” said Roger Crook, chief executive officer, DHL Global Forwarding, Freight. The data findings of DHL’s study will likely be of benefit to corporate as well as political and economic leaders as they shape business and trade strategies, Crook said. “By calibrating how truly connected we are, countries can identify opportunities and the channels through which they can improve their prosperity.”?

“Our research shows that global economic integration is not as deep as perceived. Therefore, we see untapped potential for growth for each country and globally. Increasing global connectedness is likely to spur further growth by adding trillions of dollars to global gross domestic product,” added Ghemawat.??

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