Modelling the policy challenges confronting globalising developing countries

Neil Dias Karunaratne

International Journal of Business and Globalisation, 2010, vol. 4, issue 4, 413-434

Abstract: The article models the policy challenges facing globalising developing countries. Models from the pure theory of international trade, the small open economy model, growth accounting, the Solow-Swan model, the gravity model, models of portfolio diversification and currency crises models are reviewed to distil policy guidelines to promote the globalisation of developing countries. The overriding objective of promoting the globalisation of developing countries is to reduce poverty and income inequality between and within countries. Pro- and anti-globalisers are currently locked in a heated controversy as to whether the latest wave of globalisation has bucked the past trend of increasing poverty and income inequality in developing countries. Anti-globalisers lament that protracted waves of globalisation have failed to extricate developing countries from the structural malaise that traps them in a vicious circle of poverty. They advocate the radical reshaping of the international financial architecture to make globalisation work for the developing countries by reducing their vulnerability to recurrent financial crises and crisis contagion. The article concludes by reviewing the geography and institution school research that offers new policy vistas for promoting globalisation in developing countries.

Keywords: developing countries; globalisation; macroeconomic models; policy; economic growth; poverty; income inequality; currency crises; international financial architecture; international trade; small open economyies; , growth accounting; Solow-Swan model; gravity model; modelling; portfolio diversification; currency crises. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=32973 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijbglo:v:4:y:2010:i:4:p:413-434

Access Statistics for this article

More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().