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Governments, Exports and Growth: Responding to the Challenges and Opportunities of Globalisation
Author(s) -
Alexander Chris,
Warwick Ken
Publication year - 2007
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2007.00877.x
Subject(s) - openness to experience , globalization , economics , government (linguistics) , investment (military) , international economics , action (physics) , welfare , international trade , development economics , economic policy , market economy , political science , psychology , social psychology , linguistics , philosophy , physics , quantum mechanics , politics , law
We live in an increasingly globalised world. Trade has consistently grown faster than GDP and has been an important driver of world growth. What role should government play in this process? This paper considers the rationale for government action and the merits of various policies focusing on the UKs experience: the benefits of openness to trade and overseas investment and the merits of tackling barriers that discourage greater participation by firms in international markets. It also considers whether this approach needs to be adapted given current trends in globalisation, concluding that a continued emphasis on openness and addressing market failures will be welfare enhancing.