Globalization, Infrastructure, and Inclusive Growth
AbstractThis paper covers threes issues : first, defining and measuring inclusive growth; second, the relationship between international trade and inequality; and third, the links between infrastructure and inequality. Both international trade and infrastructure make it easier for people to exchange goods and services and to increase income by allowing specialization, economies of scale, variety, etc. The gains are important not only in aggregate, but also at an individual level, and different peopleâ€™s ability to take advantage of them varies. Hence each can increase inequality. Critical to sharing the gains from trade is mobilityâ€”specifically labor mobility, which determines the capacity of people to move from areas, sectors, skills, or firms of low or declining opportunity to those of higher opportunity. In the context of inclusive growth, this constitutes a challenge. However, the answer should not be to eschew opening up the economy or building infrastructure, but to do so in an informed way and seek to undertake complementary policies that help the less well-off take advantage of them.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 23974.
Date of creation: Feb 2014
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inclusive growth; international trade and inequality; infrastructure and inequality; Infrastructure; globalization;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F64 - International Economics - - Economic Impacts of Globalization - - - Environment
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-15 (All new papers)
- NEP-INT-2014-03-15 (International Trade)
- NEP-PBE-2014-03-15 (Public Economics)
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