Construction of (composite) indices by the Principal Component Analysis (PCA) is very common, but this method has a preference for highly correlated variables to the poorly correlated variables in the dataset. However, poor correlation does not entail marginal importance, since correlation...

Construction of (composite) indices by the PCA is very common, but this method has a preference for highly correlated variables to the poorly correlated variables in the data set. However, poor correlation does not entail the marginal importance, since correlation coefficients among the...

Using the KOF data at the annual level, we construct ten different composite indices for comparing the extent of globalization of 131 countries for eleven years, 1999-2009. We compare the different indices of globalization among themselves and also with the Dreher-KOF index of globalization and...