Globalisation and cointegration among the states and convergence across the continents: A panel data analysis

This paper attempts to examine the level of cointegration among various nations across continents with respect to their globalisation. An approach is also made to analyse the nature of inter- and intra-continental globalisation and its variation over time. The proximity and convergence over time, in terms of the growth of globalisation is examined by using a panel data set over a period from 1970 to 2007. The outcome reveals the presence of co-integration among selected nations. The European nations are more co-integrated than those in other continents. They are closely followed by the countries in Africa and Asia. The proximity matrices of overall globalisation and political globalisation provide some important indications that geographical proximity, economic necessities, cultural and political understanding play a crucial role in determining the clusters of countries in terms of globalisation.