PERTANIKA JOURNAL OF SOCIAL SCIENCES AND HUMANITIES

 

e-ISSN 2231-8534
ISSN 0128-7702

Home / Regular Issue / JSSH Vol. 29 (4) Dec. 2021 / JSSH-8116-2021

 

Global Connectivity and Ethnic Fractionalization: New Frontiers of Global Trade Agenda

Demetria May T. Saniel, Sales G. Aribe Jr. and Jovelin M. Lapates

Pertanika Journal of Social Science and Humanities, Volume 29, Issue 4, December 2021

DOI: https://doi.org/10.47836/pjssh.29.4.01

Keywords: Ethnic heterogeneity, fractal analysis, Global Connectivity Index, Gross Domestic Product, global connectivity, globalization, international trade, world economy

Published on: 13 December 2021

International trade is an exchange that involves goods and services between countries or international territories, and it signifies a significant share of gross domestic product. Global trading provides opportunities for the country to show its products and services through imports and exports. While this international event gives rise to a world economy, global connectivity and ethnic heterogeneity play a significant role. This paper aims to determine whether the ruggedness of a country supports international trade and global connectivity and whether the ruggedness of ethnic heterogeneity supports global trading. This paper uses the non-experimental quantitative inferential design utilizing Fractal Analysis to determine the self-similarity of countries engaging in international trade in terms of their global connectivity index and ethnic fractionalization. The International Trade data provided by the World Integrated Trade Solutions and the Global Connectivity Index (GCI) data through Huawei Technologies are plotted in a histogram through Minitab Software to determine the fractality and further apply exponential logarithm. Study shows that global connectivity and ethnic fractionalization induce the fractal characteristics of the countries’ international trade ruggedness. Specific to the behavior is that countries with very high international trade also behave similarly with high global connectivity and very low ethnicity fractionalization. As countries sustain a progressive economic stance, their societies maintain very few ethnic groups to promote social cohesion, much less conflict created by many ethnic groups that vary in their concerns. This paper further explains that only countries with digital economic competitiveness and cultural homogeneity survive robust international trade.

  • Ahmad, N., & Amin, S. (2020). Does ethnic polarization stimulate or relegate trade and environmental performance? A global perspective. Environment, Development and Sustainability, 22, 6513-6536. https://doi.org/10.1007/s10668-019-00497-z

  • Alesina, A., Devleeschauwer, A., Easterly, W., Kurlat, S., & Wacziarg, R. (2003). Fractionalization. Journal of Economic Growth, 8(2), 155-194. https://doi.org/10.1023/A:1024471506938

  • Alesina, A., Di Tella, R., & MacCulloch, R. (2004). Inequality and happiness: Are Europeans and Americans different? Journal of Public Economics, 88(9-10), 2009-2042. https://doi.org/10.1016/j.jpubeco.2003.07.006

  • Alesina, A., & La Ferrara, E. (2005). Ethnic diversity and economic performance. Journal of Economic Literature, 43(3), 762-800.

  • Alkaabi, K., Debbage, K., & Touq, A. B. (2013). The promise of the aerotropolis model in the United Arab Emirates: The role of spatial proximity and global connectivity. The Arab World Geographer, 16(3), 289-312. https://doi.org/10.5555/arwg.16.3.g61n13n43m1p365q

  • Andersson, U., Dasí, Á., Mudambi, R., & Pedersen, T. (2016). Technology, innovation, and knowledge: The importance of ideas and international connectivity. Journal of World Business, 51(1), 153-162. https://doi.org/10.1016/j.jwb.2015.08.017

  • Bankası, D. (2019). World Integrated Trade Solution (WITS): The World Bank. https://wits.worldbank.org/countrystats.aspx.

  • Berman, A., Marino, A., & Mudambi, R. (2020). The global connectivity of regional innovation systems in Italy: A core–periphery perspective. Regional Studies, 54(5), 677-691. https://doi.org/10.1080/00343404.2019.1672865

  • Bianchi, S., & Frezza, M. (2017). Fractal stock markets: International evidence of dynamical (in) efficiency. Chaos: An Interdisciplinary Journal of Nonlinear Science, 27(7), 071102. https://doi.org/10.1063/1.4987150

  • Budescu, D. V., & Budescu, M. (2012). How to measure diversity when you must. Psychological Methods, 17(2), 215-227. https://doi.org/10.1037/a0027129

  • Desjardins, J. (2018, February 23). These are the world’s most traded goods. World Economic Forum. https://www.weforum.org/agenda/2018/02/the-top-importers-and-exporters-of-the-world-s-18-most-traded-goods.

  • Dhawan, R., & Zilio, G. (2014). Chinese global connectivity: A decade of rapid change. http://rdhawan.com/papers/Dhawan_Zilio_2014_PAPER.pdf

  • Dyck, R. G. (2006). Fractal planning for integral economic development. Kybernetes: The International Journal of Systems & Cybernetics, 35(7-8), 1037-1047.

  • Duanmu, J. L., & Guney, Y. (2013). Heterogeneous effect of ethnic networks on international trade of Thailand: The role of family ties and ethnic diversity. International Business Review, 22(1), 126-139. https://doi.org/10.1016/j.ibusrev.2012.02.009

  • Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. The Quarterly Journal of Economics, 112(4), 1203-1250. https://doi.org/10.1162/003355300555466

  • Erdem, Ö., Burdorf, A., & Van Lenthe, F. J. (2017). Ethnic inequalities in psychological distress among urban residents in the Netherlands: A moderating role of neighborhood ethnic diversity? Health & Place, 46, 175-182. https://doi.org/10.1016/j.healthplace.2017.05.014

  • Fearon, J. D. (2003). Ethnic and cultural diversity by country. Journal of Economic Growth, 8(2), 195-222.

  • Frezza, M., Bianchi, S., & Pianese, A. (2020). Fractal analysis of market (in) efficiency during the COVID-19. Finance Research Letters, 38, 101851. https://doi.org/10.1016/j.frl.2020.101851

  • Hirte, G., Lessmann, C., & Seidel, A. (2020). International trade, geographic heterogeneity, and interregional inequality. European Economic Review, 127, 103427. https://doi.org/10.1016/j.euroecorev.2020.103427

  • Huawei. (2019). Powering intelligent connectivity with global collaboration: Mapping your transformation into a digital economy with GCI 2019. Huawei Technologies Co., Ltd. https://www.huawei.com/minisite/gci/assets/files/gci_2019_whitepaper_en.pdf?v=20191217v2

  • Huawei. (2020). Shaping the new normal with intelligent connectivity: Mapping your transformation into a digital economy with GCI 2020. Huawei Technologies Co., Ltd. https://www.huawei.com/minisite/gci/assets/files/gci_2020_whitepaper_en.pdf?v=20201217v2

  • Hughes, D. (2012). Ethnic identity from the margins: A Christian perspective. William Carey Library.

  • Johnson-Singh, C. M., Rostila, M., de Leon, A. P., Forsell, Y., & Engström, K. (2018). Ethnic heterogeneity, social capital, and psychological distress in Sweden. Health & Place, 52, 70-84. https://doi.org/10.1016/j.healthplace.2018.03.006

  • Karpiarz, M., Fronczak, P., & Fronczak, A. (2014). International trade network: Fractal properties and globalization puzzle. Physical Review Letters, 113(24), 248701. https://doi.org/10.1103/PhysRevLett.113.248701

  • Kasarda, J. D. (2019). Aerotropolis. The Wiley Blackwell Encyclopedia of Urban and Regional Studies, 1-7.

  • Li, K. (2007). Performing the globalized city: Contemporary Hong Kong theatre and global connectivity. Asian Theatre Journal, 24(2), 440-469.

  • Li, D. Y., Nishimura, Y., & Men, M. (2014). Fractal markets: Liquidity and investors on different time horizons. Physica A: Statistical Mechanics and Its Applications, 407, 144-151. https://doi.org/10.1016/j.physa.2014.03.073

  • Liebovitch, L. S., & Shehadeh, L. A. (2003). Tutorials in contemporary nonlinear method for the behavioral sciences. National Science Foundation. https://www.nsf.gov/pubs/2005/nsf05057/nmbs/nmbs.pdf.

  • Montalvo, J. G., & Reynal-Querol, M. (2005). Ethnic polarization, potential conflict, and civil wars. American Economic Review, 95(3), 796-816. https://doi.org/10.1257/0002828054201468

  • Nees, C. (2005). Trade, growth, and global connectivity in the New Zealand context (No. 34). NZ Trade Consortium Working Paper.

  • Patac Jr., A. V., & Padua, R. N. (2015). Fractal statistical analysis. SDSSU Multidisciplinary Research Journal, 3, 104-109.

  • Sigler, T., & Martinus, K. (2018). Perth’s global connectivity. The University of Western Australia. https://preview.committeeforperth.com.au/assets/documents/FACTBase-Bulletin-60-Perths-Global-Connectivity-June-2018.pdf.

  • Van Der Bly, M. C. (2007). Globalization and the rise of one heterogeneous world culture: A microperspective of a global village. International Journal of Comparative Sociology, 48(2-3), 234-256. https://doi.org/10.1177/0020715207075401

  • Wunnava, P. V., Mitra, A., & Prasch, R. E. (2015). Globalization and the ethnic divide: Recent longitudinal evidence. Social Science Quarterly, 96(5), 1475-1492.