Among 139 countries, and with a globalisation index of 47 out of 50, Singapore has been recognised as the second most global country in the world.
This is the third consecutive year Singapore has been placed second on the Depth Index of Globalisation survey by the IESE business school, while Hong Kong claimed the top spot with a perfect score of 50.
Rounding up the top three was Luxembourg with a score of 46.
The report credited Singapore’s high levels of international integration and a small internal market, which necessitated a larger share of trade, investment, communications, and even people, outside of the country’s own borders, as the biggest drivers behind the country’s performance.
However, the study highlighted the world is “still less deeply interconnected in 2012 than it was in 2007”, and cited macroeconomic weakness as the main culprit leading to stalling levels of globalisation within countries.
Increasing protectionism restricting both trade and foreign investment was also identified to be a contributing factor.
“At a time of economic uncertainty around the world, increasing globalisation represents one of the most powerful levers available for boosting growth,” Pankaj Ghemawat, professor of global strategy at the IESE business school, said.
Top 10 ranks on the Depth Index of Globalisation 2013
1. Hong Kong SAR (China)