The Social Impact of Globalization in the Developing Countries

By Eddy Lee, M. Vivarelli. Social Science Research Network, 2006

191 citations recorded by the source corpus.

In this paper an ex-post measurable definition of globalization 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 inequality in DCs, although some evidence emerges that import of capital goods may imply an increase in inequality via skill-biased technological change; 3)increasing trade seems to foster economic growth and absolute poverty alleviation, although some important counter-examples emerge.

Subfields: General Health Professions, Political Science and International Relations, Public Administration

View Paper: https://www.semanticscholar.org/paper/d22de2509c026a9a4d9a37934971abd6149164f1

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In General Health Professions

  1. M. Vivarelli

In Political Science and International Relations

  1. M. Vivarelli

In Public Administration

  1. M. Vivarelli

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