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Globalization versus Protectionism: Consequences for Long–Term Growth and Welfare in the South

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  • Hans Jarle Kind

Abstract

This paper develops an endogenous growth model with two intrinsically symmetric regions, the North and the South. The analysis shows that globalization tends to increase long–term economic growth, but the South may become deindustrialized and suffer a welfare loss. I none the less find that protectionism need not reverse international inequalities: on the contrary, owing to locational hysteresis the South may lageven further behind. However, with continued globalization welfare in the South will unambiguously increase. JEL Classification Numbers: F12, F13, F15.

Suggested Citation

  • Hans Jarle Kind, 2002. "Globalization versus Protectionism: Consequences for Long–Term Growth and Welfare in the South," The Japanese Economic Review, Japanese Economic Association, vol. 53(3), pages 274-289, September.
    • Handle: RePEc:bla:jecrev:v:53:y:2002:i:3:p:274-289
    DOI: 10.1111/1468-5876.00228
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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