IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp1925.html
   My bibliography  Save this paper

The Social Impact of Globalization in the Developing Countries

Author

Listed:
  • Lee, Eddy

    () (ILO International Labour Organization)

  • Vivarelli, Marco

    () (Università Cattolica del Sacro Cuore)

Abstract

In this paper an ex-post measurable definition of globalization has been used, namely increasing trade openness and FDI. A general result is that the optimistic Heckscher-Ohlin/Stolper-Samuelson predictions do not apply, that is neither employment creation nor the decrease in within-country inequality are automatically assured by increasing trade and FDI. The other main findings of the paper are that: 1) the employment effect can be very diverse in different areas of the world, giving raise to concentration and marginalisation phenomena; 2) increasing trade and FDI do not emerge as the main culprits of increasing within-country income inequality in DCs, although some evidence emerges that import of capital goods may imply an increase in inequality via skill-biased technological change; 3)increasing trade seems to foster economic growth and absolute poverty alleviation, although some important counter-examples emerge.

Suggested Citation

  • Lee, Eddy & Vivarelli, Marco, 2006. "The Social Impact of Globalization in the Developing Countries," IZA Discussion Papers 1925, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1925
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp1925.pdf
    Download Restriction: no

    Other versions of this item:

    More about this item

    Keywords

    within-country income inequality; trade; FDI; employment; poverty;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iza:izadps:dp1925. 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: (Mark Fallak). General contact details of provider: http://www.iza.org .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.