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Does Fast Growth in India and China Help or Harm US Workers?

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Author Info

  • Alex Izurieta
  • Ajit Singh

Abstract

A major issue today is whether globalization of the world's labour, capital and product markets, together with rapid economic growth in India and China, will have an adverse effect on workers in the US and other advanced countries. Simulations of different scenarios using the Cambridge-Alphametrics Model of the World Economy indicate that, at a bloc-disaggregated level, there are severe supply-side constraints relating particularly to natural resources (energy and raw materials) that thwart the expansionary demand effects of fast growth in India and China. This analysis is based on long-term trends in the world economy prior to the current global financial crisis. However, for the sake of completeness, it also comments on the likely implications of this crisis for the USA and other advanced country workers.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Human Development and Capabilities.

Volume (Year): 11 (2010)
Issue (Month): 1 ()
Pages: 115-141

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Handle: RePEc:taf:jhudca:v:11:y:2010:i:1:p:115-141

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Related research

Keywords: Development; Industrialization; Growth convergence; India/China; US workers;

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Cited by:
  1. Ajit Singh, 2012. "Financial Globalization and Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(1), pages 135-151, February.
  2. Singh, Ajit, 2011. "The economic and financial crisis of 2008-2010: the international dimension," MPRA Paper 53091, University Library of Munich, Germany.
  3. Singh, Ajit, 2011. "Comparative advantage, industrial policy and the World Bank: back to first principles," MPRA Paper 39050, University Library of Munich, Germany.
  4. Singh, Ajit, 2011. "Globalization, Openness and Economic Nationalism: Analytical and Conceptual Issues A Foreword to Globalization and Economic Nationalism in Asia," MPRA Paper 53039, University Library of Munich, Germany.
  5. Singh, Ajit & Zammit, Ann, 2011. "Globalisation, labour Standards and economic Development," MPRA Paper 53096, University Library of Munich, Germany.

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