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Globalization And Inequality

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Globalization And Inequality

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One of the world’s leading experts on international trade explains that we must look beyond globalization to explain rising inequality. Globalization is not the primary cause of rising inequality. This may come as a surprise. Inequality within nations has risen steadily in recent decades, at a time when countries around the world have eased restrictions on the movement of goods, capital, and labor. Many assume a causal relationship, which has motivated opposition to policies that promote freer trade. Elhanan Helpman shows, however, in this timely study that this assumption about the effects of globalization is more myth than fact. Globalization and Inequality guides us through two decades of research about the connections among international trade, offshoring, and changes in income, and shows that the overwhelming conclusion of contemporary research is that globalization is responsible for only a small rise in inequality. The chief causes remain difficult to pin down, though technological developments favoring highly skilled workers and changes in corporate and public policies are leading suspects. As Helpman makes clear, this does not mean that globalization creates no problems. Critics may be right to raise concerns about such matters as cultural autonomy, child labor, and domestic sovereignty. But if we wish to curb inequality while protecting what is best about an interconnected world, we must start with a clear view of what globalization does and does not do and look elsewhere to understand our troubling and growing divide.

Elhanan Helpman

Elhanan Helpman (born March 30, 1946) is an Israeli economist who is currently the Galen L. Stone Professor of International Trade at Harvard University. He is also a Professor Emeritus at the Eitan Berglas School of Economics at Tel Aviv University. Helpman is among the thirty most cited economists in the world according to IDEAS/RePEc. Helpman's contributions include studies of the balance of payments, exchange-rate regimes, stabilization programs and foreign debt. Most important, however, are his studies of international trade, economic growth and political economy. He is a cofounder of the "new trade theory'' and the "new growth theory,'' which emphasize the roles of economies of scale and imperfect competition. Much of his work in trade, growth, and political economy is summarized in seven books: Market Structure and Foreign Trade (with Paul Krugman), Trade Policy and Market Structure (with Paul Krugman), Innovation and Growth in the Global Economy (with Gene Grossman), Special Interest Politics (with Gene Grossman), Interest Groups and Trade Policy (with Gene Grossman), The Mystery of Economic Growth, and Understanding Global Trade.

Title

Globalization And Inequality

Author

Elhanan Helpman

Publisher

Harvard University Press

Number of Pages

215

Language

English (US)

Category

  • Economics
  • First Published

    JAN 2018

    One of the world’s leading experts on international trade explains that we must look beyond globalization to explain rising inequality. Globalization is not the primary cause of rising inequality. This may come as a surprise. Inequality within nations has risen steadily in recent decades, at a time when countries around the world have eased restrictions on the movement of goods, capital, and labor. Many assume a causal relationship, which has motivated opposition to policies that promote freer trade. Elhanan Helpman shows, however, in this timely study that this assumption about the effects of globalization is more myth than fact. Globalization and Inequality guides us through two decades of research about the connections among international trade, offshoring, and changes in income, and shows that the overwhelming conclusion of contemporary research is that globalization is responsible for only a small rise in inequality. The chief causes remain difficult to pin down, though technological developments favoring highly skilled workers and changes in corporate and public policies are leading suspects. As Helpman makes clear, this does not mean that globalization creates no problems. Critics may be right to raise concerns about such matters as cultural autonomy, child labor, and domestic sovereignty. But if we wish to curb inequality while protecting what is best about an interconnected world, we must start with a clear view of what globalization does and does not do and look elsewhere to understand our troubling and growing divide.
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