Globalization and Industrial Revolutions in India and China: Implications for Advanced and Developing Economies and for National and International Policies
This paper examines the impact on labour markets in advanced countries (ACs) of the integration of the two giant fast-growing countries, China and India, with the liberalised global economy. The integration is taking place under “current globalisation,” which consists of free trade, free capital movements and domestic labour market flexibility (instead of free international movement of labour). The first part reviews economic theory as well as several generations of empirical work on the effects of the fast expansion of exports from developing countries (DCs) on AC labour markets. Taking into account the positive, the negative, the direct and the indirect effects, the most up-to-date empirical research suggests that globalisation has a small overall effect on output and employment in the US, that is just as likely to be favourable as being unfavourable, depending on the time period and the countries considered. The paper highlights the pioneering contribution of Freeman (2005), which suggests that even if trade with the South has not previously disadvantaged North workers, the doubling of the global labour force with India and China’s recent integration with the international economy may have profoundly unfavourable repercussions for AC workers. Two major points of constructive criticism of the Freeman thesis have been emphasised here: (a) the lack of analysis of the relevant demand side variables and (b) inadequate recognition of the inherent economic strength and dynamism of the US economy and its innovative large corporations. These should enable the U.S to maintain its technological leadership. In relation to policy, the underlying question examined here is whether India and China’s industrial revolutions, which are a social imperative for these countries, can be sustained and made compatible with full employment and rising real wages for workers in the North. It is concluded that current globalisation cannot meet these twin objectives and that coordination and cooperation between nation states under alternative globalisation are much the better way, if not the only way of realising these goals. The reasons why this should be so are explained in the last part of the paper.
|Date of creation:||2007|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004.
"Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development,"
Journal of Economic Growth,
Springer, vol. 9(2), pages 131-165, 06.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," CID Working Papers 97, Center for International Development at Harvard University.
- (No last name available), Himanshu, 2013. "Poverty and Food Security in India," ADB Economics Working Paper Series 369, Asian Development Bank.
- Ajit Singh, 2004. "Labour Standards and the 'Race to the Bottom': Rethinking Globalization and Workers' Rights from Developmental and Solidaristic Perspectives," Oxford Review of Economic Policy, Oxford University Press, vol. 20(1), pages 85-104, Spring.
- Professor Ajit Singh, 2004. "Labour Standards And The “Race To The Bottom”: Rethinking Globalisation And Workers Rights From Developmental And Solidaristic Perspectives," Working Papers wp279, Centre for Business Research, University of Cambridge.
- Singh, Ajit, 2003. "Special and Differential Treatment, The Multilateral Trading System and Economic Development in the 21st Century," MPRA Paper 24653, University Library of Munich, Germany.
- Singh, Ajit, 2003. "Special and Differential Treatment, The Multilateral Trading System and Economic Development in the 21st Century," MPRA Paper 24301, University Library of Munich, Germany.
- Matthew J. Slaughter & Phillip L Swagel, 1997. "Does Globalization Lower Wages and Export Jobs?," IMF Economic Issues 11, International Monetary Fund.
- A Singh, 2001. "Income Inequality in Advanced Economies: A Critical Examination of the Trade and Technology Theories and an Alternative Perspective," Working Papers wp219, Centre for Business Research, University of Cambridge.
- Thomas Piketty & Emmanuel Saez, 2006. "The Evolution of Top Incomes: A Historical and International Perspective," American Economic Review, American Economic Association, vol. 96(2), pages 200-205, May.
- Thomas Piketty & Emmanuel Saez, 2006. "The Evolution of Top Incomes: A Historical and International Perspective," NBER Working Papers 11955, National Bureau of Economic Research, Inc.
- Thomas Piketty & Emmanuel Saez, 2006. "The evolution of top incomes: a historical and international perspectives," Post-Print halshs-00754642, HAL.
- Singh, Ajit, 1995. "Institutional requirements for full employment in advanced economies," MPRA Paper 54990, University Library of Munich, Germany.
- Nirvikar Singh, 2004. "The Impact of International Labor Standards: A Survey of Economic Theory," International Trade 0412007, EconWPA.
- Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
- Anthony B. Atkinson, 2000. "The Changing Distribution of Income: Evidence and Explanations," German Economic Review, Verein für Socialpolitik, vol. 1(1), pages 3-18, 02.
- Singh, Ajit, 1977. "UK Industry and the World Economy: A Case of De-industrialisation?," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 113-136, June.
- repec:ilo:ilowps:388773 is not listed on IDEAS
- Hoeven, Rolph van der. & Lübker, Malte., 2006. "Financial openness and employment the need for coherent international and national policies," ILO Working Papers 993887733402676, International Labour Organization.
- Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
- M.L. Varma, 1984. "World Economy," Foreign Trade Review, , vol. 19(2), pages 347-353, July.
- Singh, Ajit & Zammit, Ann, 2000. "The global labour standards controversy: critical issues for developing countries," MPRA Paper 53480, University Library of Munich, Germany.
- Ajit Singh & Ann Zammit, 2014. "The Global Labour Standards Controversy: Critical Issues for Developing Countries," Working Papers id:5908, eSocialSciences.
- Singh, Ajit, 1989. "Third World Competition and De-industrialisation in Advanced Countries," Cambridge Journal of Economics, Oxford University Press, vol. 13(1), pages 103-120, March.
- Dasgupta, Sukti & Singh, Ajit, 2006. "Manufacturing, Services and Premature Deindustrialization in Developing Countries: A Kaldorian Analysis," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
- Kaldor, Nicholas [Lord], 1976. "Inflation and Recession in the World Economy," Economic Journal, Royal Economic Society, vol. 86(344), pages 703-714, December.
- Sonja Opper, 2005. "The giant graduates: China's strive for high-technology," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(3), pages 43-48, October.
- Bhagwati, Jagdish, 1994. "Free Trade: Old and New Challenges," Economic Journal, Royal Economic Society, vol. 104(423), pages 231-246, March.
- Ajit Singh & Sukti Dasgupta, 2005. "Will services be the new engine of economic growth in India?," Working Papers wp310, Centre for Business Research, University of Cambridge.
- Alex Izurieta & Terry McKinley, 2006. "Addressing Global Imbalances: A Development-Oriented Policy Agenda," Working Papers 23, International Policy Centre for Inclusive Growth. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24286. 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: (Joachim Winter)
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.