Measuring Soft Power: A New Global Index

IMF Working Papers, October 4, 2024

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Measuring Soft Power: A New Global Index

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Bibliographic details

• Authors: Serhan Cevik, Tales Padilha
• Published: October 4, 2024
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9798400289576.001

Overview and Purpose

• Authors: Serhan Cevik, Tales Padilha
• Date: October 4, 2024
• Series: IMF Working Paper No. 2024/212
• Pages: 24
• DOI: https://doi.org/10.5089/9798400289576.001
• ISBN: 9798400289576
• ISSN: 1018-5941
• Core objective: Introduce a new comprehensive Global Soft Power Index (GSPI) that captures the multidimensional nature of soft power for a broad sample of countries over a long span of time.

GSPI Framework and Structure

• GSPI is a composite index composed of six dimensions.
• The framework enables comparisons at:
  • the headline GSPI level, and
  • the level of the sub-indices (six dimensions), facilitating granular identification and study of how countries differ in soft power.
• The composite GSPI captures the matrix of soft power characteristics, offering advantages for comparative analysis across countries and over time.

Methodology and Analytical Tools

• The paper uses composite indicator construction techniques.
• Mentioned analytical methods and tools include:
  • K-Means clustering
  • principal component analysis

Key Findings

• Existing indicators are mostly subjective and not always transparent and fail to account for soft power’s multidimensional nature.
• The composite GSPI provides a systematic approach to measure soft power along multiple dimensions.
• A macro-financial application is presented to investigate the relationship between soft power and exchange rates.
• Results indicate that some dimensions of the GSPI play an important role in explaining exchange rate volatility.

Subject Areas and Keywords

• Subject: Education, Exchange rate modelling, Exchange rates, Foreign exchange, Real effective exchange rates, Real exchange rates
• Keywords: comparative analysis, composite GSPI, composite indicators, comprehensive Global Soft Power Index, Exchange rate modelling, exchange rate volatility, Exchange rates, Global, GSPI score, IMF working paper No. 24/212, K-Means clustering, principal component analysis, Real effective exchange rates, Real exchange rates, Soft power

Implications

• The GSPI allows policymakers and researchers to:
  • compare soft power at both aggregate and dimension-specific levels, and
  • explore macro-financial links such as the association between soft power dimensions and exchange rate volatility.

IMF Working Papers — Measuring Soft Power: A New Global Index (Serhan Cevik, Tales Padilha), IMF Working Paper No. 2024/212

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