Measuring Globalization: Better Trade Statistics for Better Policy

Economic and trade liberalization in developing countries, coupled with technological advances that have greatly lowered trade and communication costs, have fueled an explosion in the volume of international trade since the 1990s. Trade liberalization and technological advances also have enabled a tremendous expansion in the types of international transactions, including trade in services and intangibles and the development of complex global supply chains. 

The accompanying expansion of multinational companies has blurred the boundaries of national economies, and the production of manufactured goods and some services increasingly has shifted to emerging economies. While international trade in goods and services has long been expanding, the speed and scope of recent changes have given rise to the term “globalization.” Among the most pressing policy questions in the United States and other advanced economies are those concerning the impact of globalization: Has globalization fostered productivity growth and well-being in advanced economies? Or have the forces of globalization weakened key national industries, resulted in widespread worker dislocation and wage stagnation, and worsened inequality? Understanding the impacts of globalization is critical to fashioning appropriate policies in a rapidly changing world. 

But understanding its impacts requires good data, and national statistical systems were not designed to measure many of the transactions occurring in today’s global economy. 

Want to know more? Click this link: http://research.upjohn.org/cgi/viewcontent.cgi?article=1250&context=up_press


Suggested by: Jamaliah Jaafar (Statistician, DOSM)