{"title":"Globalization and economic development","authors":"Sven W. Arndt","doi":"10.1080/09638199900000018","DOIUrl":null,"url":null,"abstract":"A feature of the continuing integration of the world economy is the globalization of production and the consequent rise of trade in parts and components. Products are more internationalized and less identified with any particular country. Non-trivial shares of the value-added of many exports consist of imports and vice versa. Extension of the international division of labour beyond finished products offers developing countries a broader range of choices for industrialization. This paper explores the implications of these developments in the context of a standard trade model. Component specialization in a developing country's import sector is shown to be superior in overall welfare terms to specialization in the integrated product. Output and employment are higher in the sector, but the wage-rental ratio is lower.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"24 1","pages":"309-318"},"PeriodicalIF":2.2000,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"80","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Trade & Economic Development","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/09638199900000018","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 80
Abstract
A feature of the continuing integration of the world economy is the globalization of production and the consequent rise of trade in parts and components. Products are more internationalized and less identified with any particular country. Non-trivial shares of the value-added of many exports consist of imports and vice versa. Extension of the international division of labour beyond finished products offers developing countries a broader range of choices for industrialization. This paper explores the implications of these developments in the context of a standard trade model. Component specialization in a developing country's import sector is shown to be superior in overall welfare terms to specialization in the integrated product. Output and employment are higher in the sector, but the wage-rental ratio is lower.
期刊介绍：
The Journal of International Trade and Economic Development ( JITED) focuses on international economics, economic development, and the interface between trade and development. The links between trade and development economics are critical at a time when fluctuating commodity prices, ongoing production fragmentation, and trade liberalisation can radically affect the economies of advanced and developing countries. Our aim is to keep in touch with the latest developments in research as well as setting the agenda for future analysis. Publication of high quality articles covering; theoretical and applied issues in international and development economics; econometric applications of trade and/or development issues based on sound theoretical economic models or testing fundamental economic hypotheses; models of structural change; trade and development issues of economies in Eastern Europe, Asia and the Pacific area; papers on specific topics which are policy-relevant; review articles on important branches of the literature including controversial and innovative ideas are also welcome. JITED is designed to meet the needs of international and development economists, economic historians, applied economists, and policy makers. The international experts who make up the journal’s Editorial Board encourage contributions from economists world-wide.
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