Title: Modelling financial type 2b globalisation and its effects on trade, investments and unemployment

Authors: Bruno G. Rüttimann

Addresses: Inspire AG/ETH Zürich, Technoparkstrasse 1, 8005 Zürich, Switzerland

Abstract: The description and teaching of economic globalisation still lacks a comprehensive formal and normative theory. The globalisation types model is a proposal to bridge this deficiency. This paper analyses the repercussion of financial transactions on the evolution of economic cycles and links the speculative part of financial type 2b globalisation to physical demand and trade flows of globalisation type 1, capital investments of globalisation type 2a, as well as human migration of globalisation type 3a. The result is a cognitive model showing the influence and systemic effects of financial transactions performed on commodity exchanges causing increased volatility of commodity prices and the repercussion on economic cycle of the global industry value-chain of the real economy. It represents the keystone of the globalisation types model integrating by system dynamics modelling the interactions of the various economic globalisation types and subtypes.

Keywords: economic globalisation; financial transactions; globalisation types; economic cycles; effects; physical demand; trade flows; capital investment; human migration; unemployment; modelling; cognitive models; volatility; commodity prices; value chain; system dynamics.

DOI: 10.1504/IJCEE.2016.075628

International Journal of Computational Economics and Econometrics, 2016 Vol.6 No.2, pp.176 - 191

Received: 10 Jan 2015
Accepted: 07 Aug 2015
Published online: 30 Mar 2016 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article