GEP Research Paper 06/41
The Fear of Competitive Pressure of Globalization and Outsourcing
ZhihaoYu
Abstract
Why does the current wave of globalization create more public concern/opposition than previous rounds of trade liberalization? This paper identifies a key difference between globalization and trade liberalization that could be responsible for it. It is shown that while both globalization and trade liberalization create inter-sector income distribution, the former also creates intra-sector income distribution and intra-sector uncertainty . These new features of globalization imply lower public support.
Issued in November 2006.
This paper is available in PDF format .