Trade, Social Insurance, and the Limits to Globalization

Dani Rodrik

No 5905, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: International economic integration increases exposure to external risk and intensifies domestic demands for social insurance through government programs. But international economic integration also reduces the ability of governments to respond to such pressure by rendering the tax base footloose. With globalization proceeding apace, the social consensus required to maintain domestic markets open to trade may erode to the point where a return to protection becomes a serious possibility.

JEL-codes: F10 F13 (search for similar items in EconPapers)
Date: 1997-01
Note: ITI IFM
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Citations: View citations in EconPapers (43)

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