IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/126837.html
   My bibliography  Save this paper

The social footprint of globalization: towards the introduction of strategic industries in quantitative trade models

Author

Listed:
  • Colantone, Italo
  • Ottaviano, Gianmarco Ireo Paolo
  • Stanig, Piero

Abstract

We argue that our understanding of industrial policy in the presence of 'strategic' industries that exert positive externalities on the national economy may benefit from an extension of quantitative general equilibrium trade models making the extent and pattern of trade-induced re-allocations more salient. To make these features relevant for national welfare, we introduce the notion of the 'social footprint' of globalization as the result of suboptimal trade-induced structural transformation in the presence of externalities. For proof of concept, we use simple workhorse models featuring two countries and two industries (only one of which is 'strategic') to highlight the role of the 'scale elasticity' of the strategic industry and the consequences of the most common assumptions on market structure in quantitative trade analyses.

Suggested Citation

  • Colantone, Italo & Ottaviano, Gianmarco Ireo Paolo & Stanig, Piero, 2024. "The social footprint of globalization: towards the introduction of strategic industries in quantitative trade models," LSE Research Online Documents on Economics 126837, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126837
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/126837/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    globalization; quantitative trade models; trade liberalization; market structure; externalities; strategic industries;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F00 - International Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:126837. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.