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Globalisation: A New Growth, New Trade Perspective
Author(s) -
Chui Michael,
Levine Paul,
Murshed Mansoob,
Pearlman Joseph
Publication year - 1998
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00111
Subject(s) - openness to experience , economics , globalization , mistake , developing country , investment (military) , world economy , foreign direct investment , perspective (graphical) , development economics , international economics , international trade , macroeconomics , political science , market economy , economic growth , law , psychology , social psychology , artificial intelligence , politics , computer science
The current crisis in Asia has seen the case for more open economic policy come under attack in the developing world. In this article Michael Chui, Paul Levine, Mansoob Murshed, and Joseph Pearlman argue that any reversal of the trend towards globalisation would be a great mistake for policymakers. The association of openness with higher growth is one of the most robust empirical results in economics. Here we explore the mechanisms that explain this result. We argue that current high growth rates in Asia are unsustainable and there is a long‐term as well as a short‐term problem of ‘over‐investment’ in Asia. However, we report research findings that show how international knowledge spillovers and free trade can enable the world economy to grow, the developing countries to progress, and the developed countries to benefit.