IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v4y2013i2p135-157.html
   My bibliography  Save this article

Has Trade been an Engine of Inclusive Growth? India’s Experience under Globalization

Author

Listed:
  • K.J. Joseph

    (K.J. Joseph, Ministry of Commerce Chair Professor, Centre for Development Studies, Trivandrum, Kerala, India. Email: kjjoseph@cds.ac.in)

Abstract

In the current context of heightened concern for inclusive development, this article explores the link between trade liberalization and inclusive growth by analyzing the channels by which trade liberalization-induced structural change and employment patterns influence growth, inequality and poverty. Drawing from the empirical evidence from India, it is observed that trade-induced structural change has been associated with jobless growth and growing wage inequality. Hence, higher growth has not been inclusive, as it has not resulted in commensurate decline in poverty while inequality increased. To the extent that the nature of trade induced structural change is governed by the prevailing systems of innovation, the article calls for building and strengthening the learning, innovation and competence building systems at the national, regional and sectoral level such that growth becomes inclusive and human capabilities and freedoms are expanded.

Suggested Citation

  • K.J. Joseph, 2013. "Has Trade been an Engine of Inclusive Growth? India’s Experience under Globalization," Millennial Asia, , vol. 4(2), pages 135-157, October.
    • Handle: RePEc:sae:millen:v:4:y:2013:i:2:p:135-157
    DOI: 10.1177/0976399613506315
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0976399613506315
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0976399613506315?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anne O. Krueger, 1974. "Appendices and Index to "Foreign Trade Regimes and Economic Development: Turkey"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Turkey, pages 271-339, National Bureau of Economic Research, Inc.
    2. Anne O. Krueger, 1974. "Foreign Trade Regimes and Economic Development: Turkey," NBER Books, National Bureau of Economic Research, Inc, number krue74-1, March.
    3. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
    4. Rayaprolu Nagaraj, 2002. "Trade and Labour Market Linkages in India: Evidence and Issues," Economics Study Area Working Papers 50, East-West Center, Economics Study Area.
    5. T. N. Srinivasan & Jagdish Bhagwati, 2001. "Outward-Orientation and Development: Are Revisionists Right?," Palgrave Macmillan Books, in: Deepak Lal & Richard H. Snape (ed.), Trade, Development and Political Economy, chapter 1, pages 3-26, Palgrave Macmillan.
    6. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," The World Bank Research Observer, World Bank, vol. 17(2), pages 191-235, September.
    7. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    8. Jan Fagerberg & Koson Sapprasert, 2011. "National innovation systems: the emergence of a new approach," Science and Public Policy, Oxford University Press, vol. 38(9), pages 669-679, November.
    9. Bengt-Åke Lundvall & K. J. Joseph & Cristina Chaminade & Jan Vang (ed.), 2009. "Handbook of Innovation Systems and Developing Countries," Books, Edward Elgar Publishing, number 12943.
    10. Richard B. Freeman & Remco H. Oostendorp, 2002. "Wages Around the World: Pay across Occupations and Countries," International Economic Association Series, in: Richard B. Freeman (ed.), Inequality Around the World, chapter 2, pages 5-37, Palgrave Macmillan.
    11. Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September.
    12. Balassa, Bela, 1971. "Trade Policies in Developing Countries," American Economic Review, American Economic Association, vol. 61(2), pages 178-187, May.
    13. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    14. Dieter Ernst & Bengt-åke Lundvall, 2004. "Information Technology in the Learning Economy: Challenges for Developing Countries," Chapters, in: Erik S. Reinert (ed.), Globalization, Economic Development and Inequality, chapter 9, Edward Elgar Publishing.
    15. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    16. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
    17. Ekholm, Karolina & Sodersten, Bo, 2002. "Growth and Trade vs. Trade and Growth," Small Business Economics, Springer, vol. 19(2), pages 147-162, September.
    18. Nissanke, Machiko & Thorbecke, Erik, 2010. "Globalization, Poverty, and Inequality in Latin America: Findings from Case Studies," World Development, Elsevier, vol. 38(6), pages 797-802, June.
    19. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    20. Sen, Amartya, 1983. "Development: Which Way Now?," Economic Journal, Royal Economic Society, vol. 93(372), pages 742-762, December.
    21. repec:dau:papers:123456789/10091 is not listed on IDEAS
    22. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    23. Shige Makino & Chung-Ming Lau & Rhy-Song Yeh, 2002. "Asset-Exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 403-421, September.
    24. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    25. Sanjaya Lall, 2001. "Competitiveness, Technology and Skills," Books, Edward Elgar Publishing, number 2298.
    26. Mike Hobday, 1994. "Export‐led Technology Development in the Four Dragons: The Case of Electronics," Development and Change, International Institute of Social Studies, vol. 25(2), pages 333-361, April.
    27. Zhu, Susan Chun & Trefler, Daniel, 2005. "Trade and inequality in developing countries: a general equilibrium analysis," Journal of International Economics, Elsevier, vol. 65(1), pages 21-48, January.
    28. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    29. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.
    30. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-174, February.
    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


    Cited by:

    1. Leonard Fong Litt Lam & Siong Hook Law & W. N. W. Azman-Saini & Normaz Wana Ismail, 2023. "High Technology Trade and the Roles of Absorptive Capabilities in Malaysia," Millennial Asia, , vol. 14(3), pages 315-340, September.
    2. Ghulam Mustafa, 2023. "The Dynamic Relationship Between Financial Development, Economic Growth, Foreign Direct Investment and Trade Openness: Evidence from South Asian Countries," Millennial Asia, , vol. 14(3), pages 406-433, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athreye, Suma & Cantwell, John, 2007. "Creating competition?: Globalisation and the emergence of new technology producers," Research Policy, Elsevier, vol. 36(2), pages 209-226, March.
    2. Sudip Ranjan Basu, 2005. "Correlating Growth with Well-Being during Economic Reforms Evidence from India and China," Development and Comp Systems 0509010, University Library of Munich, Germany.
    3. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    4. Dawood Mamoon, 2015. "How May International Trade affect Poverty in a Developing Country Setup? The Inequality Channel," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(5), pages 230-244, May.
    5. Tariq Banuri, 1989. "Black Markets, Openness, and Central Bank Autonomy," WIDER Working Paper Series wp-1989-062, World Institute for Development Economic Research (UNU-WIDER).
    6. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    7. Gnangnon, Sèna Kimm, 2020. "Aid for Trade, Export Product Diversification and Import Product Diversification," EconStor Preprints 223021, ZBW - Leibniz Information Centre for Economics.
    8. Erzan R., 1986. "External account, growth and employment in Egypt and Turkey: historical review and prospects," ILO Working Papers 992485223402676, International Labour Organization.
    9. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    10. Yoshimichi Murakami, 2018. "Globalization and Income Inequality in Latin America: A Review of Theoretical Developments and Recent Evidence," Discussion Paper Series DP2018-16, Research Institute for Economics & Business Administration, Kobe University, revised Aug 2018.
    11. Mustafa Ismihan & Kivilcim Metin-Ozcan & Aysit Tansel, 2002. "Macroeconomic Instability, Capital Accumulation and Growth: The Case of Turkey 1963-1999," Working Papers 0209, Economic Research Forum, revised 21 Mar 2002.
    12. Awolusi D. Olawumi, 2019. "Human Capital Development and Economic Growth in BRICS Countries: Controlling for Country Differences," Journal of Economics and Behavioral Studies, AMH International, vol. 11(4), pages 1-17.
    13. van der Boor, Paul & Oliveira, Pedro & Veloso, Francisco, 2014. "Users as innovators in developing countries: The global sources of innovation and diffusion in mobile banking services," Research Policy, Elsevier, vol. 43(9), pages 1594-1607.
    14. Roman Arjona & Maxime Ladaique & Mark Pearson, 2001. "Growth, Inequality and Social Protection," OECD Labour Market and Social Policy Occasional Papers 51, OECD Publishing.
    15. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.
    16. Augey Dominique, 1995. "Political Economy Of Policy Reform In Developing Countries," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 6(4), pages 1-8, December.
    17. Li, Muqun & Coxhead, Ian A., 2009. "Trade, Technology and Inequality in a Developing Country: Theory and Evidence from China," Staff Papers 92236, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    18. Reuter & Ulrich, 2004. "The Effects of Intraregional Disparities on Regional Development in China: Inequality Decomposition and Panel-Data Analysis," Econometric Society 2004 Far Eastern Meetings 716, Econometric Society.
    19. Machiko, Nissanke, 2011. "International and Institutional Traps in Sub-Saharan Africa under Globalisation: A Comparative Perspective," CEI Working Paper Series 2011-6, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    20. K. J. Joseph & Liyan Zhang & Kiran Kumar Kakarlapudi, 2018. "The Dragon Turns around and the Elephant Moves Forward: Inequality in China and India under Globalization," Millennial Asia, , vol. 9(3), pages 235-261, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:millen:v:4:y:2013:i:2:p:135-157. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.