By Na Jeong-ju
Korea's "economic interconnectivity" with the rest of the world ranked 20th as of 2012, according to a recent by the McKinsey Global Institute (MGI).
In terms of the flows of goods, services, finance and people, the country was less connected with the rest of the world than the likes of Russia, Saudi Arabia, Malaysia and Poland, the report showed.
The institute included Korea among the ranks of "developed" countries, while those four countries were among the "emerging" economies.
Germany topped the list, followed by Hong Kong, the United States, Singapore and the United Kingdom. Russia ranked ninth, Saudi Arabia 16th, Malaysia 18th and Poland 19th.
Among major Asian countries, Japan placed 21st, China 25th, India 30th and Indonesia 56th.
The report said volatile capital flows can wreak havoc on economic growth and job supply, but there is a positive correlation between a country's participation in global flows and its gross domestic product (GDP) growth. This suggests globalization contributes to faster economic growth.
Korea's participation in these global flows amounted to $1.39 trillion in 2012, about 123 percent of the country's GDP that year.
The country ranked seventh in the world in terms of flows of goods and placed 14th in flows of services. However, its rankings in flows of finance and people were 25th and 58th, respectively, meaning the country lags behind in people-to-people exchanges and financial market globalization.
The global flows of goods, services, and finance in 2012 reached $26 trillion, or 36 percent of the global GDP. The portion is 1.5 times larger than in 1990, when the flows stood at only $5 trillion, or 23 percent of the global GDP, the report said.
If the spread of digital technologies and rising prosperity in emerging economies continues, the global flows will nearly triple by 2025, it said.
"We find that economies with more connections see up to 40 percent more benefit from participation than do less-connected economies," the report said.
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In terms of the flows of goods, services, finance and people, the country was less connected with the rest of the world than the likes of Russia, Saudi Arabia, Malaysia and Poland, the report showed.
The institute included Korea among the ranks of "developed" countries, while those four countries were among the "emerging" economies.
Germany topped the list, followed by Hong Kong, the United States, Singapore and the United Kingdom. Russia ranked ninth, Saudi Arabia 16th, Malaysia 18th and Poland 19th.
Among major Asian countries, Japan placed 21st, China 25th, India 30th and Indonesia 56th.
The report said volatile capital flows can wreak havoc on economic growth and job supply, but there is a positive correlation between a country's participation in global flows and its gross domestic product (GDP) growth. This suggests globalization contributes to faster economic growth.
Korea's participation in these global flows amounted to $1.39 trillion in 2012, about 123 percent of the country's GDP that year.
The country ranked seventh in the world in terms of flows of goods and placed 14th in flows of services. However, its rankings in flows of finance and people were 25th and 58th, respectively, meaning the country lags behind in people-to-people exchanges and financial market globalization.
The global flows of goods, services, and finance in 2012 reached $26 trillion, or 36 percent of the global GDP. The portion is 1.5 times larger than in 1990, when the flows stood at only $5 trillion, or 23 percent of the global GDP, the report said.
If the spread of digital technologies and rising prosperity in emerging economies continues, the global flows will nearly triple by 2025, it said.
"We find that economies with more connections see up to 40 percent more benefit from participation than do less-connected economies," the report said.
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