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|dc.description.abstract||Globalization is not only about the rise of trade, FDI, and migration. It is also about thechanging linkages among these flows. The main findings of the paper can be summarized asfollows. First, at least in the nineties, import trade liberalization fostered not only trade butalso inward investment, confirming that trade and FDI toward developing countries havebecome largely complements. Second, the presence of a skilled labour force is a relevantfactor to attract FDI. Moreover, trade policies and the stock of FDI have a positive impact onthe incentives to invest in education. This set of findings highlights the possibility of a lowequilibrium trap where the lack of human capital discourages FDI and inadequate investmentfrom abroad limits the domestic incentives to acquire education. Rich countries, byencouraging skilled immigration from relatively poor countries, are definitely aggravating sucha risk. Third, we find little evidence supporting the contrary argument of a brain gain, wherethe possibility for skilled workers to migrate abroad raises the return to education and theinvestment in human capital. Overall, our results highlight the need to study globalization in afully integrated way, not just as the sum of its different components. They also show thatbacktracking in one area (e.g. trade) feeds negatively on other areas (e.g. FDI).||en_US|
|dc.publisher|||aInstitute for the Study of Labor (IZA) |cBonn||en_US|
|dc.relation.ispartofseries|||aIZA Discussion paper series |x1406||en_US|
|dc.title||Trade Liberalization in a Globalizing World||en_US|
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