The effects of globalisation on developing economies

Betros, Sam. (2004). The effects of globalisation on developing economies Honours Thesis, School of Economics, The University of Queensland.

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Author Betros, Sam.
Thesis Title The effects of globalisation on developing economies
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2004
Thesis type Honours Thesis
Total pages 119
Language eng
Subjects 14 Economics
Formatted abstract
This thesis aims to test the effect that globalisation has on developing countries' economies. The focus of this thesis is the period of globalisation experienced since the collapse of the Bretton Woods system in the 1970s.

International trade has been the focus of economic theory since Ricardo's comparative advantage. The major theoretical prediction of economic theory is that trade will increase economic welfare within the domestic economy. Theories such as the Heckscher-Ohlin theory of trade predict shifts in focus of the domestic economy production to the good which makes relatively intensive use of the good which is relatively abundant.

This thesis tests these economic theories to judge whether they have real life predictive power that can be used by developing economies' policymakers. This is done through the use of a number of econometric models and graphical observation. The first regresses growth of GDP against the growth rates of labour, capital and trade. Lags of trade growth are added to this model to further the analysis. The second model analyses the relationship between agricultural employment and trade. These models were applied to developing economies regardless of location, and then on geographical subgroups.

The findings of these tests suggest that trade has a negative current period effect on GDP, but positive long-term effects. The findings also suggest Heckscher-Ohlin style shifts in factor distribution do not occur.

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
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Created: Wed, 01 Dec 2010, 13:32:39 EST by Ning Jing on behalf of The University of Queensland Library