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Globalization in crisis – confronting a new economic reality

WIDER Annual Lecture 27
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Report: Towards peace, decent work, and greater equality

Research evidence for transforming economies, states, and societies
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The Job Ladder: Transforming informal work and livelihoods in developing countries

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10953 UNU-WIDER articles, publications, projects, experts...

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    Working Paper
    Taxes and Tax Reform in Ethiopia, 1990-2004

    In 1991 the Ethiopian Revolution Democratic Front (EPRDF) toppled the old ‘socialist’ regime that had ruled the country for seventeen years. In contrast to the previous policy regime of hard control, EPRDF initiated a wide range of reforms that...

    • Fiscal policy
    • Income distribution
    • Macroeconomics
    Working Paper
    Consistent Testing for Poverty Dominance

    If uncertainty exists over the exact location of the poverty line or over which measure to use to compare poverty between distributions, one may want to check whether poverty dominance holds. We develop a consistent statistical test to test the null...

    • Econometric models (Economic development)
    • Income distribution
    • Poverty measurement
    Working Paper
    The Microeconomics of Inequality, Poverty and Market Liberalizing Reforms

    This paper illustrates how the use of microeconometric techniques can be used to uncover the micro dynamics behind macro shocks. Using Mexican micro data we find out that—controlling for everything else—between 1994 and 1998 returns to personal...

    • Equality and inequality
    • Income distribution
    • Labour demand
    Working Paper
    Poverty Measurement and Theories of Beneficence

    This note points to certain similarities of orientation and outcome between Derek Parfit’s quest for a theory of beneficence and Amartya Sen’s quest for a suitable real-valued representation of poverty. It suggests that both projects, in a certain...

    • Equality and inequality
    • Index numbers (Economics)
    • Poverty
    Working Paper
    Reckoning Inter-Group Poverty Differentials in the Measurement of Aggregate Poverty

    In a heterogeneous population which can be partitioned into well-defined subgroups, it is plausible that the extent of measured aggregate poverty should depend upon the distribution of poverty across the subgroups. A judgment in favour of an equal...

    • Equality and inequality
    • Index numbers (Economics)
    • Poverty
    Working Paper
    Poverty and the Welfare Costs of Risk Associated with Globalization

    ‘Globalization’ implies change, and uncertainty over future change may affect household welfare. We use data on Lorenz curves over the last fifty years for a sample of 53 (mostly developing) countries. Treating each country-quintile-year as an...

    • Consumption
    • Econometric models (Economic development)
    • Globalization
    Working Paper
    Why Do Poverty Rates Differ From Region to Region?

    This paper proposes a semi-parametric method for poverty decomposition, which combines the data-generating procedure of Shorrocks and Wan (2004) with the Shapley value framework of Shorrocks (1999). Compared with the popular method of Datt and...

    • Econometric models (Economic development)
    • Poverty
    • Regional economics
    Working Paper
    Climate change policy and power sector reform in Mexico under the ‘golden age of gas’

    Mexico’s low-carbon technology perspectives show lack of coherence with the rising ambition in climate change commitments, for which Mexico is internationally praised. The comparison of two recent energy reforms, corresponding to two administrations...

    • Gas utilities
    • Natural resources
    • Power resources
    Working Paper
    Out of School and (Probably) in Work

    This paper explores the hypothesis that the phenomenon of child labour is explicable in terms of poverty that compels a household to keep its children out of school and put them to work in the cause of the household’s survival. In exploring the link...

    • Children
    • Econometric models (Economic development)
    • Labour economics
    Working Paper
    The world’s two new middles

    This paper discusses the emergence of two new middles since the Cold War, namely middle-income countries and people living above absolute poverty but below a security-from poverty-line. The paper sets out what has happened. It is argued that although...

    • Economic growth
    • Equality and inequality
    • Income distribution
    Working Paper
    How do small firms respond to tax schedule discontinuities?

    In this paper we study the effects of various tax schedule discontinuities on the behavior of small firms using high-quality and population-wide tax register data from South Africa. We use the bunching method to analyse how these discontinuities...

    • Corporate governance
    • Small business
    • Taxation
    Working Paper
    It Works; It Doesn't; It Can, But that Depends...

    This paper surveys 50 years of empirical research on the macroeconomic impact of aid, looking mainly at studies examining the link between aid and growth. It argues that studies dating until the late 1990s produced either contradictory or...

    • Economic assistance and foreign aid
    • Econometric models (Economic development)
    • Macroeconomics
    Working Paper
    Job flows, worker flows, and churning in South Africa

    In this paper, worker and job flows are estimated using the IRP5 data from the South African Revenue Services. The data used in this paper is from the 2011–14 tax years and contains information on more than 12 million individuals and nearly 300,000...

    • Job satisfaction
    • Labour
    • Labour economics
    Policy Brief
    Two cheers on growth and poverty in Sub-Saharan Africa
    • Economic growth
    • Poverty
    Working Paper
    Explaining Threshold Effects of Globalization on Poverty

    The paper focuses on the non-linearity of the transmission of the impact of globalization on poverty and the existence of threshold effects. Institutions constitute a critical factor for the creation of threshold effects in the impact of...

    • Globalization
    • Institutional economics
    • Poverty
    Working Paper
    Beyond the Notion of Security Community

    African regional organizations’ increasing activity in security policy is usually approached through the concept of a ‘security community’, which can only partially clarify their difficult situation. A multilevel governance model is suggested as a...

    • International economic relations
    • Regional economics
    • International security
    Working Paper
    Constitution Writing and Conflict Resolution

    Over 1975-2003 nearly 200 new constitutions were drawn up in countries at risk of conflict, as part of peace processes and the adoption of multiparty political systems. The process of writing constitutions is considered to be very important to the...

    • Democracy
    • Econometric models (Economic development)
    • Social conflict
    Working Paper
    Is the International Community Helping to Recreate the Pre-Conditions for War in Sierra Leone?

    ‘In a very real sense, the conditions that spawned the war and inflicted gruesome casualties on Sierra Leone’s citizens have not disappeared’, warned the International Crisis Group. In this paper we argue that many of those conditions are being...

    • Democratization
    • Economic assistance and foreign aid
    • Corruption
    Working Paper
    Diamonds, Foreign Aid, and the Uncertain Prospects for Post-Conflict Reconstruction in Sierra Leone

    This article examines the external and internal dimensions of post-conflict reconstruction in Sierra Leone. The United Nations, bilateral donors such as the United Kingdom, and transnational non-governmental organizations and aid agencies have been...

    • Economic assistance and foreign aid
    • Corruption
    • Natural resources
    Working Paper
    Transforming Conflict with an Economic Dividend

    Peace can generate an economic dividend, which can be further increased by appropriate economic reform. This dividend can in turn be used to raise popular support for conflict resolution measures along the road to achieving a final political...

    • Economic assistance and foreign aid
    • Public expenditures
    • Social conflict
    Working Paper
    Market Size, Linkages, and Productivity

    One account of spatial concentration focuses on productivity advantages arising from market size. We investigate this for 40 regions of Japan. Our results identify important effects of a region’s own size, as well as cost linkages between producers...

    • Gross national product
    • Productivity
    • Regional economics
    Working Paper
    Conflicts, Poverty and Human Development in Northern Uganda

    The long-running conflict in northern Uganda has led to major violations of human rights against civilians, destruction of infrastructure, reduced access to social services, and paralysed economic activity. Creating peace and fostering reconciliation...

    • Public expenditures
    • Local government
    • Poverty
    Working Paper
    Inequality, Corruption, and Competition in the Presence of Market Imperfections

    We analyze the relation between inequality, corruption and competition in a developing economy context where markets are imperfect. We consider an economy where different types of households (efficient and inefficient) choose to undertake production...

    • Econometric models (Economic development)
    • Equality and inequality
    • Economic equilibrium
    Working Paper
    Distributional Conflict, the State, and Peacebuilding in Burundi

    This paper examines the causes of conflict in Burundi and discusses strategies for building peace. The analysis of the complex relationships between distribution and group dynamics reveals that these relationships are reciprocal, implying that...

    • Distribution
    • Education
    • Equality and inequality
    Working Paper
    The Political Economy of Postwar Reconstruction in Lebanon

    This paper studies the postwar economic and political reconstruction in Lebanon. The paper shows that the ‘reconstruction boom’ was short-lived. The economy experienced a growth trap early in the reconstruction period, and entered a cyclical crisis...

    • Distribution
    • Public expenditures
    • Fiscal policy
    Working Paper
    Delayed marriage, contraceptive use, and breastfeeding

    The rate of fertility decline has been slow in sub-Saharan Africa (SSA). Using the Demographic and Health Surveys for 21 SSA countries between 1990 and 2014, we examine the within-country fertility patterns by wealth, applying the Bongaarts (2015)...

    • Families
    • Human fertility
    • Population
    Working Paper
    Trade Openness and Vulnerability in Central and Eastern Europe

    This paper offers a substantive contribution to the debate on the role of international trade on the development of emerging countries. The aim is to detect empirically the phenomenon of vulnerability induced by trade openness. The methodology adopts...

    • Econometric models (Economic development)
    • International trade
    • Macroeconomics
    Blog
    Done sensibly, agricultural development can reduce poverty in Africa
    by Channing Arndt, Andy McKay, Finn Tarp June 2016

    The recovery and acceleration of economic growth in sub-Saharan Africa since about 1995 has been widely recognised. But less is known about the extent...

    • Economic growth
    • Poverty
    Working Paper
    Getting Infrastructure Priorities Right in Post-Conflict Reconstruction

    In this paper, an attempt is made to identify some key challenges for infrastructure sectors in post-conflict reconstruction. In spite of the Hague and Geneva Conventions, infrastructure can be damaged in conflicts, and reconstructing infrastructure...

    • Infrastructure (Economics)
    • Public goods
    • Social conflict
    Working Paper
    The Role of Information in Technology Adoption under Poverty

    An important channel through which globalization affects poverty is introducing new technologies to developing countries. Adoption of new technologies can be hindered by uncertainties about their efficiency. This paper studies the role of information...

    • Econometric models (Economic development)
    • Globalization
    • Information technology
    Working Paper
    Globalization, Production and Poverty

    The impact of globalization on poverty is a matter of keen debate but empirical work in this area has been dominated by cross-country regressions. This paper attempts to link the more macro impacts of globalization, particularly as manifested through...

    • Globalization
    • Labour market
    • Macroeconomics
    Working Paper
    Income Distribution and Labour Movement in China After WTO Membership

    Using a CGE model, PRCGEM, with an updated 2002 I/O table, this paper explores how earnings will be affected in each of 40 separate industries across 31 regions (or 8 regional blocks) of China for the period 2002–07. Labour movement between regions...

    • Equality and inequality
    • Labour market
    • Regional economics
    Working Paper
    Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries

    This study explores the effects of macroeconomic factors on total factor productivity (TFP) in 34 sub-Saharan African countries for the period 1980-2002. The econometric analysis shows that external debt is negatively and significantly related to TFP...

    • Econometric models (Economic development)
    • Macroeconomics
    • Productivity
    Working Paper
    The Relationship Between Income Inequality, Poverty, and Globalization

    This paper introduces two composite indices of globalization. The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis. They indicate the level of globalization and show how globalization...

    • Econometric models (Economic development)
    • Globalization
    • Income distribution
    Working Paper
    A Decomposition of Poverty Trends Across Regions

    The impact of globalization on global and local inequality is hotly debated in the recent literature. This study considers the separate issue of the impact of globalization on poverty through quantifying explicitly the responsiveness of poverty to...

    • Econometric models (Economic development)
    • Equality and inequality
    • Globalization
    Research Brief
    Wage inequality in urban China
    • Wages
    • Income inequality
    • Wage growth
    Blog
    What should Mozambique do with the revenue from natural gas projects? (Part III)
    by UNU-WIDER, Ivandra Vieira, Gerson Paris Baza, Silvana Mondlane April 2019

    At the beginning of this decade, large offshore natural gas fields were discovered in north-east Mozambique. Investment is now flowing into the...

    • Extractives
    • Mozambique
    • Revenues
    Policy Brief
    Inequality in Mexico

    Since 1989, inequality in Mexico has risen, declined, and risen again. The evolution of labour income inequality is at the core of this pattern. To reverse the current trend of rising inequality, access to secondary and tertiary education should...

    • Labour income
    • Inequality
    • Top incomes
    Working Paper
    Globalization's Bystanders

    This paper uses trade theory to examine the effects of trade liberalization on countries that do not participate in it. These include both countries that fail to participate in multilateral trade negotiations, and also countries that lie outside of...

    • Globalization
    • International trade
    • Macroeconomics
    Policy Brief
    Inequality in India on the rise

    Following the introduction of economic reforms in the early 1990s, India today is achieving unprecedented per capita growth rates. Poverty reduction has also accelerated and is justly celebrated. There is great concern, however, that this growth is...

    • Inequality
    • Decomposition
    • Welfare dynamics
    Journal Article
    Climate change and developing country growth

    We consider the interplay of climate change impacts, global mitigation policies, and the economic interests of developing countries to 2050. Focusing on Malawi, Mozambique, and Zambia, we employ a structural approach to biophysical and economic...

    Research Brief
    Financing the social cash transfer scale-up in Zambia
    • Economic inequality
    • Poverty
    • Social cash transfers
    Working Paper
    The wage-setting power of firms

    Using administrative tax records from South Africa for the period 2011–14, I find that firm wage premia explain 25 per cent of the total wage variance, 60 per cent of the gender wage gap, and 40 per cent of the gap between workers in the middle and...

    • Discrimination
    • Firm effects
    • Income inequality
    Working Paper
    The impact of a higher leverage ratio on the South African economy

    We employ a micro-founded and stock-and-flow-consistent model to study the impact of a higher leverage ratio on the South African economy. The model provides a rich representation of institutional balance sheets. The relationship between bank capital...

    • Computable general equilibrium
    • Financial dynamics
    • Leverage ratio
    Working Paper
    Evaluating the impact of global oil prices on the SADC and the potential for increased trade in biofuels and natural gas within the region

    This paper investigates whether Southern African Development Community countries that are vulnerable to changes in oil prices could instead substitute oil and petroleum products with biofuels and gas from within the region. A pooled mean group...

    • Economic growth
    • Oil prices
    • Panel data analysis
    Working Paper
    The contribution of services to trade and development in Southern Africa

    Services are the fastest growing portion of world trade and now account for nearly a quarter of global exports. This presents opportunities for emerging economies to adapt and enter new markets. Many countries in southern Africa have struggled to...

    • Tradable sectors
    • Services
    • International trade
    Working Paper
    Motorcycle parts and aftermarket industry regional value chain in Southern Africa

    This paper provides an overview of the structure, key functions, and characteristics of the motorcycle parts and aftermarket industries in Southern Africa in order to identify challenges to and opportunities for growth in these industries. The...

    • Aftermarket
    • Industrialization
    • Motorcycles
    Journal Special Issue
    SOUTHMOD: Modelling Tax-benefit Systems in Developing Countries

    Social protection has attracted increasing interest in developing countries in recent decades and policies have been initiated in all developing regions. Cash transfer policies are already in place in many African countries, but their coverage is...

    • SOUTHMOD
    • Microsimulation modelling
    • Tax-benefit microsimulation
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