Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/902
Authors: 
Gundlach, Erich
Nunnenkamp, Peter
Year of Publication: 
1996
Series/Report no.: 
Kiel Working Papers 753
Abstract: 
Globalization improves the prospects for developing countries (DCs) to catch up economically with industrialized countries. Depending on economic policies with respect to openness and factor accumulation, globalization may increase capital and technology flows to DCs, thereby generating a higher rate of income growth than would be possible in a less integrated world economy. Nevertheless, many observers draw an overly pessimistic picture of the perspectives of DCs in the era of globalization, mainly for three reasons. First, DC membership in institutionalized regional integration schemes such as in Europe and North America is sometimes considered to be a necessary precondition for economic success. Second, a low level of interfirm technology cooperation between rich and poor countries is feared to delink DCs from technological progress. Third, a relatively high concentration of foreign direct investment flows on a few advanced DC hosts is said to limit the development prospects for the majority of DCs. The paper shows that such concerns are largely unfounded.
JEL: 
F21
Document Type: 
Working Paper

Files in This Item:
File
Size
104.53 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.