Globalization's Bystanders: Does Trade Liberalization Hurt Countries that Do Not Participate?

globalization, trade liberalization

Globalization’s Bystanders: Does Trade Liberalization Hurt Countries that Do Not Participate?

This paper uses trade theory to examine the effects of trade liberalization on countries that do not participate in it. These include both countries that fail to participate in multilateral trade negotiations, and also countries that lie outside of preferential trading arrangements such as free trade areas. The analysis suggests that, while it is theoretically possible for excluded countries to gain, through improved terms of trade, from trade liberalization, several reasons suggest that they are more likely to lose.Trade liberalization, Globalization

International Labor Migration and Its Implications in the APEC Region

This paper identifies some of the key issues confronting the Asia-Pacific member-economies that arise from the discussions in the APEC forum. A brief review of existing labor flows within the APEC regions is presented. A discussion on how globalization and trade liberalization will impact on the international movements of labor in the APEC regions is also included.globalization, trade sector, liberalization, APEC

GLOBALIZATION & REGIONALIZATION IN INTERNATIONAL TRADE

The concept of globalization refers to the growing interdependence of countries, resulting from the increasing integration of trade, finance, investments, labor markets and ideas in one globalmarketplace. The most important elements of this process are the international trade and the cross-border investment flows. Economic globalization has increased the specialization of workers, while the companies compete in global markets. Even globalization has recently become a common topic in academic discourse, many economists focused, from the 1980s and 1990s, in addition to globalization, on regionalization - the growth of networks of interdependence within multinational regions of the world. The recent decades arecharacterized by the fact that the world trade grew faster than world output, which implies that an increasing share of world GDP crosses international borders. The trend is explained, mostly, by thesubstantially declining of the trade barriers during the same period, as a result of successive trade negotiation rounds under the auspices of the GATT/WTO, unilateral trade liberalization and regional tradeagreements. Even there are global connections between all the countries, the strongest political and economic integration is being created within a few specific regions of the world: Europe, North America and East Asia.globalization, regionalization, international trade, trade agreement, trade liberalization, economic integration, global market

Trade Liberalization with Heterogenous Firms

This paper examines the impact of trade liberalization with heterogeneous firms using the Melitz (2003) model. We find a number of novel results and effects including a Stolper-Samuelson like result and several results related to the volume of trade, which are empirically testable. We also find what might be called an anti-variety effect as the result of trade liberalization. This resonates with the often voiced criticism from antiglobalists that globalization leads the world to become more homogenous by eliminating local specialities. Nevertheless, we find that trade liberalization always leads to welfare gains in the model.

Health-related Services in Multilateral and Preferential Trade Arrangements in Asia and the Pacific

In many developing countries, the health-care sector is under-developed, lacking basic infrastructure and human capital, and attracting little attention from investors and policymakers. While encouraging globalization and trade may aggravate those problems and create additional costs in some circumstances, trade liberalization and deeper integration into the global economy could also provide opportunities and resources to address those problems more effectively. This paper contributes to the debate by reporting on the status of liberalization achieved in the health services sector by members of ESCAP through their regional and multilateral trade liberalization commitments.Health services trade, GATS, TRIPS, Preferential Trade Aggreeemetns, Modes of Services Delivery, ASEAN

The impact of trade liberalization upon inequality in developing countries - A review of theory and evidence-

The examination of the impact of trade reform and globalization is ultimately concerned with two fundamental goals: improving the average level of income per capita and achieving greater equality in the distribution of income. Trade liberalization is a key aspect of the broader topic of globalization", but is more clearly defined and more clearly linked to economic theory and policy. This study examines the evidence for developing countries over the last two decades concerning the impact of trade reform upon the distribution of wages. 2 Recent studies of the impact of trade upon distribution emerged as an attempt to understand the rapid growth in the relative wages of more versus less educated workers in the United States beginning in the 1970´s that could not be explained by changes in the relative supply of skill. This spawned an large, still expanding empirical and theoretic literature focusing on developing countries that subsequently led to examination of the same issues in developing countries. The principal theoretic reference point for the recent literature on trade and distribution is the Hecksher-Ohlin-Samuelson (or Hecksher-Ohlin-Viner, henceforth "HOS/HOV") model and related Stolper-Samuelson and Rybczinski theorems. The Stolper-Samuelson theorem as applied to production with skilled and unskilled labor leads to opposite predictions for the impact of trade liberalization on distribution for "Northern" countries with a comparative advantage in skilled labor versus "Southern" countries with a compative advantage in unskilled labor. In the North the Stolper-Samuelson theorem predicts that trade liberalization leads to a rise in relative wages, while leading to a fall in relative wages in the South. Consequently, for unchanging distributions of human capital within countries over time, trade liberalization would worsen the distribution of wages in the North while improving the distribution of wages in the South. This prediction of the Stolper-Samuelson theorem has been invoked by institutions such as the World Bank and International Monetary Fund to justify trade liberalization in the South, arguing that trade liberalization leads to both greater economic growth and better distribution of wages in the South. The remainder of this paper is organized into six sections: Sections II and III examine what the impact of trade liberalization and globalization has been. Section II presents the theoretic and methodological basis for studies concerning what the impact of liberalization upon distribution has been, while Section III summarizes and evaluates the empirical evidence. Sections IV and V examine the reasons for the empirical findings in Section III, or why trade liberalization has had the documented impacts upon distribution. Section IV summarizes the theoretic and methodological bases for these studies, while Section V summarizes and evaluates the relevant empirical literature. Section VI concludes."

Globalization and the Polish economy: stylized facts and simulations using a Computable General Equilibrium Model

The aim of the paper is to quantitatively assess the impact of globalization on the economy of Poland in the medium term. Four channels of the impact of globalization are distinguished: (i) trade openness, (ii) productivity improvement, (iii) labour migrations, (iv) liberalization of the services sector. We employ a computable general equilibrium model with multiple industries and households and imperfect competition features. Our results show positive and quite significant effects of globalization on the performance of the Polish economy, stemming mainly from productivity improvements and liberalization of services. The sizeable expected migrations result in negative effects of globalization by decreasing growth potential and causing upward pressure on wages. At the sectoral level, globalization is particularly beneficial to some exporting sectors and skilled segments of the labour market.globalization, computable general equilibrium, labour migrations, trade liberalization

The opening–dependence on the European Union and globalization

Globalization is the result, as well as the cause of the expansion of trade agreements and liberalization of capital flows. Regionalism is a side effect of globalization, of particular importance in EU. The article compares the opening and dependence of EU member states with that of similar regions in the world. It argues that the combination between free trade and regionalism is destined to evolve in time.globalization, European Union, liberalization, regionalism