Advanced Search
MyIDEAS: Login to save this paper or follow this series

Globalization and the challenge for developing countries

Contents:

Author Info

  • Yusuf, Shahid

Abstract

Rsearch on the sources of growth shows several factors to be relevant to all countries, rich or poor. Whether developing countries can substantially raise per capita incomes depends on policies that address these variables: labor, human capital, capital investment in research and development, technological progress, and the increase in total factor productivity arising from scale economies, the effects of agglomeration, externalities, and institutions that secure rights and minimize transaction costs. The author argues that a comprehensive approach to globalization, managed, and abetted by good policies, can magnify the effects of growth-promoting measures. Among his observations: 1) Returns from investment in skills are much greater in a more technologically advanced and integrated economy. 2) Trade, by enlarging markets, reinforces those gains, and the option to migrate further augments the value of skills. The growing worldwide gap in income between skilled and unskilled workers suggests how much more fruitful skills are under globalization. 3) A 50 percent increase (or even a doubling) in growth rates demands a vast amount of capital, embodying modern technology and the knowledge needed to put it to best use. The international economy can be a source of such capital. 4) Openness, combined with spatially neutral domestic policies and the scaling back of regulatory constraints on domestic business activities, can unleash the full force of agglomeration economies and networking externalities, allowing industrial clusters to emerge in metropolitan regions. 5) Openness is also the best way for low-income countries to tap into technologies that will galvanize agriculture (low-income countries'economic center) and manufacturing activities and nourish indigenous technological advance. 6) No research convincingly makes the case for delaying openness or for sequencing the various elements of openness. A good case can be made for embracing all the key elements of globalization at the same time--while sequencing (where needed) the pace of integration in such areas as trade and finance.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2001/07/13/000094946_01062804153076/Rendered/PDF/multi0page.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2618.

as in new window
Length:
Date of creation: 30 Jun 2001
Date of revision:
Handle: RePEc:wbk:wbrwps:2618

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Economic Theory&Research; Environmental Economics&Policies; Banks&Banking Reform; Decentralization; Fiscal&Monetary Policy; Environmental Economics&Policies; Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Banks&Banking Reform; Health Monitoring&Evaluation;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Martin Brockerhoff, 1999. "Urban Growth in Developing Countries: A Review of Projections and Predictions," Population and Development Review, The Population Council, Inc., The Population Council, Inc., vol. 25(4), pages 757-778.
  2. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, Elsevier, vol. 43(2), pages 335-356, February.
  3. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 35(2), pages 688-726, June.
  4. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001. "Government Ownership of Banks," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp01-016, Harvard University, John F. Kennedy School of Government.
  5. Nicholas Crafts, 1999. "East Asian Growth Before and After the Crisis," IMF Staff Papers, Palgrave Macmillan, vol. 46(2), pages 2.
  6. Andres Rodriguez-Clare, 1996. "The role of trade in technology diffusion," Discussion Paper / Institute for Empirical Macroeconomics, Federal Reserve Bank of Minneapolis 114, Federal Reserve Bank of Minneapolis.
  7. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
  8. Foster, Andrew D & Rosenzweig, Mark R, 1996. "Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution," American Economic Review, American Economic Association, American Economic Association, vol. 86(4), pages 931-53, September.
  9. Schmutzler, Armin, 1999. " The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 13(4), pages 355-79, September.
  10. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, Elsevier, vol. 49(1), pages 137-150, April.
  11. Daniel K.N. Johnson & Robert E. Evenson, 2000. "How Far Away Is Africa? Technological Spillovers to Agriculture and Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 82(3), pages 743-749.
  12. Feinstein, Charles, 1999. "Structural Change in the Developed Countries during the Twentieth Century," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 15(4), pages 35-55, Winter.
  13. N. F. R. Crafts, 2000. "Globalization and Growth in the Twentieth Century," IMF Working Papers, International Monetary Fund 00/44, International Monetary Fund.
  14. repec:sae:niesru:v:170:y::i:1:p:99-105 is not listed on IDEAS
  15. Bernard, A., 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
  16. Thompson, Susan J. & Tadlock Cowan, J., 2000. "Globalizing Agro-Food Systems in Asia: Introduction," World Development, Elsevier, Elsevier, vol. 28(3), pages 401-407, March.
  17. Anne O. Krueger, 1997. "Trade Policy and Economic Development: How We Learn," NBER Working Papers 5896, National Bureau of Economic Research, Inc.
  18. Hélène Poirson, 2000. "Factor Reallocation and Growth in Developing Countries," IMF Working Papers, International Monetary Fund 00/94, International Monetary Fund.
  19. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(470), pages 295-321, April.
  20. repec:sae:niesru:v:170:y::i:1:p:87-98 is not listed on IDEAS
  21. Jeffrey A. Frankel, 2000. "Globalization of the Economy," NBER Working Papers 7858, National Bureau of Economic Research, Inc.
  22. J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
  23. De Grauwe, Paul, 2000. "Controls on Capital Flows," Journal of Policy Modeling, Elsevier, Elsevier, vol. 22(3), pages 391-405, May.
  24. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 39(4), pages 1177-1203, December.
  25. Paul Winters & Alain De Janvry & Elisabeth Sadoulet & Kostas Stamoulis, 1998. "The role of agriculture in economic development: Visible and invisible surplus transfers," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(5), pages 71-97.
  26. De Gregorio, Jose & Edwards, Sebastian & Valdes, Rodrigo O., 2000. "Controls on capital inflows: do they work?," Journal of Development Economics, Elsevier, Elsevier, vol. 63(1), pages 59-83, October.
  27. Thomas W. Hertel & Bernard M. Hoekman & Will Martin, 2002. "Developing Countries and a New Round of WTO Negotiations," World Bank Research Observer, World Bank Group, World Bank Group, vol. 17(1), pages 113-140.
  28. McMichael, Philip, 2000. "A Global Interpretation of the Rise of the East Asian Food Import Complex," World Development, Elsevier, Elsevier, vol. 28(3), pages 409-424, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Wouterse, Fleur, 2012. "Migration and Rural Welfare: The Impact of Potential Policy Reforms in Europe," World Development, Elsevier, Elsevier, vol. 40(12), pages 2427-2439.
  2. Branko Milanovic, 2003. "Can We Discern The Effect Of Globalization On Income Distribution? Evidence From Household Surveys," HEW, EconWPA 0310002, EconWPA.
  3. Almas Heshmati, 2010. "The Relationship between Income Inequality, Poverty, and Globalization," Working Papers id:3237, eSocialSciences.
  4. Saadaoui, Zied, 2007. "L’intégration financière internationale :Une comparaison descriptive des effets sur les pays industrialisés et les pays émergents
    [International financial integration: A descriptive compariso
    ," MPRA Paper 25330, University Library of Munich, Germany.
  5. Fleur Wouterse, 2010. "Migration and technical efficiency in cereal production: evidence from Burkina Faso," Agricultural Economics, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 41(5), pages 385-395, 09.
  6. Aktas, Erkan, 2006. "Küreselleşme, Yoksulluk ve Genetiği Değiştirilmiş Tarım Ürünleri
    [Globalisation, Powerty and Genetically Modified Agricultural Product]
    ," MPRA Paper 8657, University Library of Munich, Germany, revised 2006.
  7. Ziv Chinzara & Radhika Lahiri, 2012. "Economic growth and inequality patterns in the presence of costly technology adoption and uncertainty," School of Economics and Finance Discussion Papers and Working Papers Series, School of Economics and Finance, Queensland University of Technology 280, School of Economics and Finance, Queensland University of Technology.
  8. Taylor, J. Edward & Wouterse, Fleur, 2006. "Migration and Income Diversification Evidence from Burkina Faso," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia, International Association of Agricultural Economists 25379, International Association of Agricultural Economists.
  9. John Luiz & Harry Charalambouse, 2009. "Factors Influencing Foreign Direct Investment of South African Financial Services Firms in Sub-Saharan Africa," Working Papers 118, Economic Research Southern Africa.
  10. Montalbano, Pierluigi & Federici, Alessandro & Triulzi, Umberto & Pietrobelli, Carlo, 2005. "Trade Openness and Vulnerability in Central and Eastern Europe," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2005/43, World Institute for Development Economic Research (UNU-WIDER).
  11. Istvan Konya & Hiroshi Ohashi, 2004. "Globalization and Consumption Patterns among the OECD Countries," Boston College Working Papers in Economics, Boston College Department of Economics 596, Boston College Department of Economics.
  12. Agenor, Pierre-Richard, 2001. "Benefits and costs of international financial integration : theory and facts," Policy Research Working Paper Series 2699, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2618. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.