There are many different ways to measure globalization and the effects of it. A proxy often used for globalization is trade openness, which can be measured as total trade of GDP, FDI and portfolio investments. However, trade openness can be influenced by location of a country and access to the sea, which is important to take into consideration. Many efforts have been made to measure and quantify globalization, but the most common ways of measuring it is to split globalization into economic, political and social dimensions. According to the KOF Index, developed by Axel Dreher, these three measures are used. The advantage of using Dreher’s three dimensions for globalization is that it is the most