Échange international et distorsions internes. Comment gouverner la globalisation ?

Jean-Luc Gaffard and Francesco Saraceno

Revue de l'OFCE, 2007, vol. n° 102, issue 3, 205-221

Abstract: Changes in the pattern of international trade inevitably create distortions that perturb the functioning of the economy. These distortions may not be reduced to malfunctioning goods or labour markets, and hence cannot be eliminated by simply choosing the optimal institutions. Domestic distortions call for domestic solutions. To explore these solutions it is useless to analyze the properties of equilibria before and after the opening to trade. Rather, we need to build an analytical framework suited to investigate the characteristics of a transition process whose success is not guaranteed ex ante. it appears that wage rigidity and an easy access to external financial resources are necessary in presence of fast pace of change, while if change is sufficiently slow the standard recipe of wage flexibility may be appropriate. These results may help in the institutional and organizational choices to be implemented in economies willing to profit from international trade and globalization. JEL Classification: F16, F41.

Keywords: globalization; trade; financial constraints; wage flexibility; firm migration (search for similar items in EconPapers)
JEL-codes: F16 F41 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=REOF_102_0205 (application/pdf)
http://www.cairn.info/revue-de-l-ofce-2007-3-page-205.htm (text/html)
free

Related works:
Working Paper: Échange international et distorsions internes: Comment gouverner la globalisation ? (2007)
Working Paper: Échange international et distorsions internes: Comment gouverner la globalisation ? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:reofsp:reof_102_0205

Access Statistics for this article

More articles in Revue de l'OFCE from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().