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Globalization Myths: Some Historical Reflections On Integration, Industrialization And Growth In The World Economy

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  • Paul BAIROCH
  • Richard KOZUL-WRIGHT
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    Abstract

    It has become popular to draw a parallel between current globalization trends and the half century of international economic integration before the First World War. Indeed, some writers suggest that current trends mark a return to this earlier period, from which they draw strong conclusions about growth prospects and convergence associated with globalization. This paper assesses this historical parallel. It accepts that many features of today´s international economy are not unique. However, it is sceptical of efforts to make a direct parallel with the earlier period. In particular, the paper shows that the period before 1913 was not one of trade liberalization, nor one of reduced expectations about the role of the State, and suggests that rapid industrial growth in some economies cannot be explained by globalization pressures. More generally, a description of this earlier period of globalization as one of rapid growth and convergence is questioned, and instead associated with uneven economic development, during which a very small group of countries were able to reinforce their domestic growth efforts through links to the international economy, while for others these same links did little to alter long-term growth prospects, and in some cases even hindered them.

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    Bibliographic Info

    Paper provided by United Nations Conference on Trade and Development in its series UNCTAD Discussion Papers with number 113.

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    Date of creation: 1996
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    Handle: RePEc:unc:dispap:113

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    Cited by:
    1. Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
    2. Branko Milanovic, 2003. "The Two Faces Of Globalization: Against Globalization As We Know It," Development and Comp Systems 0303007, EconWPA.
    3. Richard E. Baldwin & Philippe Martin, 1999. "Two Waves of Globalisation: Superficial Similarities, Fundamental Differences," NBER Working Papers 6904, National Bureau of Economic Research, Inc.
    4. Mehdi SHAFAEDDIN, 1998. "How Did Developed Countries Industrialize? The History Of Trade And Industrial Policy: The Cases Of Great Britain And The Usa," UNCTAD Discussion Papers 139, United Nations Conference on Trade and Development.
    5. Lányi, Kamilla, 2001. "Vázlat a globalizációnak nevezett jelenségkör értelmezéséről
      [Outline of an interpretation of the circle of phenomena known as globalization]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 498-519.
    6. Dani Rodrik, 1997. "Trade, Social Insurance, and the Limits to Globalization," NBER Working Papers 5905, National Bureau of Economic Research, Inc.

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