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Openness and Within-Country Inequality

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Contemporary Economic Issues

Part of the book series: International Economic Association Series ((IEA))

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Abstract

Increasing globalization is a fact of life. Dramatic reductions in transportation and communication costs, and colossal increases in capital flows, are knitting together the world economy as never before. Although some of the recent trends are not dramatically different from the past,2 there are some new patterns, such as the marked rise in manufacturing exports by a group of developing countries in East Asia. Should other developing countries, particularly those in Africa, go against the grain of this globalization, or should they work towards complementing it? While resisting global trends is most likely a futile activity, the issue of complementary policies is important because, in our view, closer integration of the world economy poses significant tradeoffs — while it holds out the prospect of higher growth it also carries dangers of increasing inequality in the short to medium run, particularly because of the interaction of globalization and new technology with existing skill and educational inequalities.

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Author information

Authors and Affiliations

  1. University of Toronto, Canada

    Susan Horton & Dipak Mazumdar

  2. The World Bank, USA

    Ravi Kanbur

Authors
  1. Susan Horton
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  2. Ravi Kanbur
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  3. Dipak Mazumdar
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Editor information

Editors and Affiliations

  1. Department of Economics, University of Chicago, USA

    Yair Mundlak

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© 1998 International Economic Association

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Horton, S., Kanbur, R., Mazumdar, D. (1998). Openness and Within-Country Inequality. In: Mundlak, Y. (eds) Contemporary Economic Issues. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26188-8_4

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