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Globalization and Inequality (Hardcover)
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Globalization and Inequality (Hardcover)
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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.
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