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Globalization and Local Economic Systems: Further Analysis for the Economic Policy of Services

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  • Garlato Guglielmo
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    Abstract

    The paper analyses the links between globalization and local economic systems, in order to single out the most suitable economic policy of services both at local and national levels. It considers the most important features of the globalisation process in the world economy and argues the ideological nature of the connection among liberalization, efficiency, competition, economic development and social welfare. The paper stresses the need for the governance of the globalisation process both at national and local levels and the prevailing role of economics on politics. Particular attention is drawn to the de-stabilizing effects on local economic systems due to the de-localization of production abroad. The hypothesis that both may entail negative externalities is shown and the problem of corporate social responsability is considered. Weak theoretical support and lack of empirical evidence challenge the conventional belief that absence of competition in the market services being used as inputs by exporting Italian industries may explain their bad performances in the international economy. The final remarks suggest to re-evaluate the role of economic policy at national and local levels.

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    Bibliographic Info

    Article provided by Società editrice il Mulino in its journal Economia dei Servizi.

    Volume (Year): (2007)
    Issue (Month): 1 ()
    Pages: 17-46

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    Handle: RePEc:mul:j1t56u:doi:10.2382/23744:y:2007:i:1:p:17-46

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    Keywords: Service industry; service economic policy; globalization; local economic systems.;

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