We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

The Economic Consequences of Globalisation in the United States

The Economic Consequences of Globalisation in the United States
Date:
21 January 2020
Authors:
Peter Petri, Meenal Banga
Tags:
Trade, GDP, Globalization, Income Distribution

Print Article:

The unprecedented rise in global interdependence since World War II, especially since the 1970s, has been very productive. World gross domestic product (GDP) growth increased from around 2% per year in the 1970s to 4% per year before the global financial crisis. Globalisation helped to lift a billion people from extreme poverty and improved the lives of billions more. The United States also gained an estimated 11%–19% of its annual GDP. Yet many Americans are concerned about the fairness of these gains. We review evidence of increasing wage inequality and stubborn unemployment effects, even though, on balance, technological change has had a much greater impact on these outcomes than globalisation. Barriers against globalisation do not offer solutions to inequality – they reduce the size of the economic pie without necessarily improving its distribution. Policies should focus on redistributing gains from growth, increasing the productivity of all workers, and helping affected communities adapt socially and economically to rapid change.

The Economic Consequences of Globalisation in the United States

Related Discussion Papers

Economic Consequences of Globalisation: Case Study of Thailand

Processing Trade, Trade Liberalisation, and Opening Up China's Miracle of International Trade

Economic Consequences of Globalisation: The Australian Framework for Reforms

Globalisation and Economic Development: Malaysia's Experience

Economic Consequences of Trade and Investment Liberalisation: The Case of Viet Nam

The Impact of Economy Globalisation Firm Performance and the Labour Market: Evidence from Japan

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Related Articles

industry and manufacturing, Innovation and Technology
6 June 2012
Editor(s)/Author(s): Ari Kuncoro
 In this paper we examine the impact of globalization on innovation in the Indonesian manufacturing sector. The lack of innovation[...]
Regulation and Governance, Social Protection
1 March 2011
Editor(s)/Author(s): Sothea Oum, Giang Thanh Long, Vathana Sann, Phouphet Kyophilavong, Thanh Long Giang, Vathana Sann, Sothea Oum, Phouphet Kyophilavong
 In fiscal year 2009, ERIA completed a research project entitled: "Social Protection in East Asia - Current State and Challenges".[...]

A PHP Error was encountered

Severity: Core Warning

Message: PHP Startup: Unable to load dynamic library 'php_fileinfo.dll' (tried: /opt/plesk/php/7.4/lib/php/modules/php_fileinfo.dll (/opt/plesk/php/7.4/lib/php/modules/php_fileinfo.dll: cannot open shared object file: No such file or directory), /opt/plesk/php/7.4/lib/php/modules/php_fileinfo.dll.so (/opt/plesk/php/7.4/lib/php/modules/php_fileinfo.dll.so: cannot open shared object file: No such file or directory))

Filename: Unknown

Line Number: 0

Backtrace: