Say for instance that the central region of a large city is subjected to increased industrialization and major investments from foreign partners. This will increase the value of that particular region, will capture the interest of other investors and will increase the living standards of the workers and the population located in the vicinity of the new business venture. However, the marginal regions of the city, where the poorer population lives and works will remain unaffected by the central developments. The situation will as such generate relative poverty and will even further increase the income inequality.
Empirical Evidence
The empirical evidence is based on numerous features and state that no general rule can be established, but that the results depend upon numerous features such as "the choice of period, of the sample, and of proxies" (Bhagwati and Srinivasan). As such, the results are once again contradictory, with findings to support both theories. They can be summarized as follows:
The link between trade and growth is given by the evidence that no self sufficient economy has managed to register growth - This observed fact can also be explained with the aid of basic economics concepts. Starting with Adam Smith and later on David Ricardo, it has been suggested that countries could register growth through the manufacturing and exporting of those items for which they possess a comparative advantage. And since autarkic countries fail to engage in such operations, it is only natural for their economies to stagnate.
Measured in the GDP of the globalizing and non-globalizing countries, studies between 1977-1997 reveal superior growth of the non-globalizing countries, implying as such that an economy can grow and expand without basis of international trade - to better explain this statement: countries not engaged in globalizing activities have managed to register superior levels of growth than the countries engaged...
Trade Liberalization In basic terms, trade liberalization has got to do with bringing down the various trade limitations existing between countries. It is important to note that in an attempt to protect their domestic industries, many countries from across the world have in the past erected numerous protectionist measures including but not limited to tariffs and quotas. This has amongst other things had the effect of stifling international trade. This text
Transportation congestion for cars and ships is said to now be worse than China's problem. Corruption has slowed construction; the government stopped highway building across northern Vietnam in 2006 after uncovering a graft scandal that led to resignations and detentions at the Transport Ministry. Factories are challenged power shortages that cause frequent interruptions as much as twice a day. Even though Vietnam's trade is booming and it has formed many
S. families. The government has introduced welfare to help these families, but they still continue to live in poverty, affecting the life of children (Baskerville, 2008). However most scholars and researcher tend to agree that at least part of the poor children will become wealthier as they grow, an article in the Stanford Social Innovation Review points out that these future adults will struggle the effects of early poverty for the
Despite the fact that it is considered to be responsible for the immense inequalities in the economic sector, it also provides the progress for least developed countries and the environment for the maintenance of the developed countries. The existence of trade blocks such as NAFTA or ASEAN are even more reasons to consider globalization as a means of improvement in terms of politics, economic, and social aspects of life. References ASEAN.
Significance of the Study This study is significant because it sheds light on a very important contributor to local and international trade. Trade fairs have a long history in providing a meeting place for buyers and sellers. They are an important channel of communication for B2B buyers and sellers. This is a significant area for study because there are limited channels of communication between B2B buyers and sellers. The previous sections
Poverty & Economic Development The link between poverty and economic development The financial services sector and poverty alleviation Infrastructure Governance Trade and Investment Human Capital Trade and investment In this paper, we explore the importance of the poverty and economic development dimensions such as infrastructure, private sector development, entrepreneurship, trade and investment and human capital. This is done while keeping in mind the ethical and governance issues like accountability and fairness and their influence on economic development. The
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