Growing World Trade: Causes and Consequences

Many international economists regard the popular conviction that unprecedented globalization has changed everything as considerably exaggerated. Americans are still so taken with the novelty of extensive international trade that they have yet to acquire a sense of perspective about its importance. E...

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Bibliographic Details
Published inBrookings papers on economic activity Vol. 1995; no. 1; pp. 327 - 377
Main Authors Krugman, Paul, Cooper, Richard N., Srinivasan, T. N.
Format Journal Article
LanguageEnglish
Published Washington The Brookings Institution 01.01.1995
Johns Hopkins University Press
Subjects
Economic impact
Economic models
Economics
Employment
Gross domestic product
Imports
International economics
International trade
Manycountries
Prices
Relative wages
Studies
Trade
Trade development
Wages
Wages & salaries
United States > US
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Summary:Many international economists regard the popular conviction that unprecedented globalization has changed everything as considerably exaggerated. Americans are still so taken with the novelty of extensive international trade that they have yet to acquire a sense of perspective about its importance. Even today, the shares of imports and exports in the US' GDP are only about 1/2 of what they were in the UK 30 years ago. The US economy is not now, and may never be, as dependent on exports as the UK was during the reign of Queen Victoria. Nevertheless, international trade has increased considerably since the 1960s. International trade has risen substantially since World War II. Much of that growth, however, simply reflects a recovery to levels achieved before World War I. The most controversial aspect of increased international trade is the growth of low-wage manufactured goods.
ISSN:0007-2303
1533-4465
0007-2303
DOI:10.2307/2534577