JSPES, Vol. 26, No. 3 (Fall 2001 )
pp. 543-568

Globalization and Economic Goals

Emmanuel Nyahoho

Traditionally, evaluations of the impact of trade liberalization have focused on measuring social welfare. In this paper we adopt the more pragmatic approach of referring to the goals of efficiency, equilibrium, equity and economic growth. Results from a statistical survey of 70 countries indicate that there is a positive and significant relationship between the goal of equilibrium and the extent of economic integration. However, this latter is only positively correlated with economic growth in the case of developing countries. As to efficiency, the least we can say is the globalization drives a reconfiguration of the industrial landscape, underscoring the legitimacy of policies supporting the competitiveness of firms.