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Globalization, Comparative Advantage, and Europe's Double Competitive Squeeze

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  • Salvatore Dominick

    (Distinguished Professor of Economics and Director of the Ph.D. Program in Economics at Fordham University in New York)

Abstract

The past decade has witnessed an increasingly rapid tendency toward globalization in the world economy, and this has significantly affected the comparative advantage and international competitiveness of nations. This paper examines the effect of globalization on the comparative advantage and international competitiveness of Europe in manufactured goods as a whole, in high technology goods, and in office equipment and telecommunications during the past two decades. In particular, the paper evaluates the view that Europe is facing a serious double competitiveness squeeze - in high-technology goods from the United States and Japan and from the bottom in simpler manufactured goods from emerging developing countries, especially the Dynamic Asian Economies. This view is based on the over-regulation and rigid labor markets prevailing in most European countries. The paper shows, however, that this view is not generally correct.

Suggested Citation

  • Salvatore Dominick, 2004. "Globalization, Comparative Advantage, and Europe's Double Competitive Squeeze," Global Economy Journal, De Gruyter, vol. 4(1), pages 1-20, October.
    • Handle: RePEc:bpj:glecon:v:4:y:2004:i:1:n:2
    DOI: 10.2202/1524-5861.1001
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    References listed on IDEAS

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    1. Gloy, Gerhard V., 0. "Ec 1992 And The Implications For The Global Agricultural Policy Picture," Increasing Understanding of Public Problems and Policies, Farm Foundation.
    2. Anonymous, 0. "Increasing Understanding Of Public Problems And Policies -- An Executive Summary; Highlights Of The 1998 National Public Policy Education Conference, Clackamas, Oregon, September 20-23, 1998," Increasing Understanding of Public Problems and Policies, Farm Foundation.
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    Cited by:

    1. Dominick Salvatore, 2017. "Europe's Growth Crisis: When and How Will It End?," The World Economy, Wiley Blackwell, vol. 40(5), pages 836-848, May.
    2. Braun Sebastian, 2010. "Foreign Competition, Multinational Firms, and One-Sided Wage Rigidity," Global Economy Journal, De Gruyter, vol. 10(2), pages 1-30, May.
    3. Salvatore, Dominick, 2020. "Growth and trade in the United States and the world economy: Overview," Journal of Policy Modeling, Elsevier, vol. 42(4), pages 750-759.
    4. Lorde Troy & Alleyne Antonio & Francis Brian, 2010. "An Assessment of Barbados' Competitiveness within the EU Market 1992-2006," Global Economy Journal, De Gruyter, vol. 10(2), pages 1-24, May.
    5. Lévy, Brigitte, 2007. "The interface between globalization, trade and development: Theoretical issues for international business studies," International Business Review, Elsevier, vol. 16(5), pages 594-612, October.

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