The Employment Impact Of Globalisation In Developing Countries

Abstract

The relationship between globalization and employment is of growing significance to policy makers in developing countries, but is surprisingly difficult to analyse theoretically and empirically. 'Globalization' means different things to different analysts and it is so multi-faceted that its effects are difficult to isolate and evaluate. Received trade theory does not provide a clear guide to its employment effects and in its most commonly used version it assumes away many factors that affect employment during globalization. Much finally depends on the ability of each country to cope with the liberalised trade, investment and technology flows that globalization implies. As this ability varies widely across the developing world - and is continuing to diverge between countries - it appears that no generalisation about the globalization-employment relationship is possible.