Trade, Social Insurance, and the Limits to Globalization

36 Pages Posted: 11 Jun 2000 Last revised: 5 Oct 2010

See all articles by Dani Rodrik

Dani Rodrik

Harvard University - Harvard Kennedy School (HKS); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: January 1997

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.

Suggested Citation

Rodrik, Dani, Trade, Social Insurance, and the Limits to Globalization (January 1997). NBER Working Paper No. w5905. Available at SSRN: https://ssrn.com/abstract=225687

Dani Rodrik (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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