Lee, Eddy and Vivarelli, Marco, 1963- (2006) The social impact of globalisation in the developing countries. Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

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Abstract

In this paper an ex-post measurable definition of globalisation has been used, namely increasing trade openness and FDI. A general result is that the optimistic Heckscher-Ohlin/Stolper-Samuelson predictions do not apply, that is neither employment creation nor the decrease in within-country inequality are automatically assured by increasing trade and FDI. The other main findings of the paper are that: 1) The employment effect can be very diverse in different areas of the world, giving raise to concentration and marginalisation phenomena; 2) Increasing trade and FDI do not emerge as the main culprits of increasing within-country income innequality in DCs, although some evidence emerges that import of capital goods may imply an increase in innequality via skill-biased technological change; 3) Increasing trade seems to foster economic growth and absolute poverty alleviation, although some important counter-examples emerge.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HG Finance J Political Science > JZ International relations
Divisions:	Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	Globalization -- Social aspects, Investments, Foreign, Poverty -- International cooperation, Wage differentials, Developing countries -- Economic conditions
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	March 2006
Number:	No.199
Number of Pages:	29
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/1906

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