Economic Growth, ‘Globalisation’ and Labour Power

Global Business and Economics Review, Vol. 9, pp. 297-318, 2007

Posted: 18 Jan 2010

Date Written: 2007

Abstract

A contentious populist belief maintains that increasing international trade or economic 'globalisation', has deleterious effects upon the economic welfare of the vast majority of the world's population. Such negative effects are an inevitable consequence of capitalism, especially that which embraces globalisation. I argue that this anti-globalisation-trade-market hypothesis is fundamentally flawed. Increasing trade and other attributes of globalisation has the capacity to enhance the bargaining power of labour and thereby economic efficiency and the rate technological change with significant resulting benefits flowing to labour. Tight labour markets can be regarded as a key capability allowing for workers to improve their welfare. But institutions must be in place to allow labour to capitalise on its market generated advantage. Unlike many neoclassical renderings of the globalisation narrative, positive effects of globalisation are in no ways guaranteed and optimised by market forces.

Keywords: Growth, Globalisation, Labour power, International Trade, Welfare, Efficiency, Labour markets, Market forces

JEL Classification: O40, F01, J52

Suggested Citation

Altman, Morris, Economic Growth, ‘Globalisation’ and Labour Power (2007). Global Business and Economics Review, Vol. 9, pp. 297-318, 2007. Available at SSRN: https://ssrn.com/abstract=1536852

Morris Altman (Contact Author)

University of Newcastle ( email )

University Drive
Callaghan, NSW 2308
Australia

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