Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33211
Authors: 
Lee, Eddy
Vivarelli, Marco
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 1925
Abstract: 
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.
Subjects: 
trade
FDI
employment
poverty
within-country income inequality
JEL: 
F02
O1
Document Type: 
Working Paper

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