The social footprint of globalization : towards the introduction of strategic industries in quantitative trade models / Italo Colantone, Gianmarco Ottaviano and Piero Stanig
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Centre for Economic Policy Research. Discussion papers ; DP18820Publisher: London : Centre for Economic Policy Research, 08 February 2024Description: 1 Online-Ressource (circa 38 Seiten) : IllustrationenSubject(s): Genre/Form: Online resources: Summary: We argue that our understanding of industrial policy in the presence of `strategic' industries that exert positive externalities on the national economy may benefit from an extension of quantitative general equilibrium trade models making the extent and pattern of trade-induced reallocations more salient. To make these features relevant for national welfare, we introduce the notion of the `social footprint' of globalization as the result of suboptimal trade-induced structural transformation in the presence of externalities. For proof of concept, we use simple workhorse models featuring two countries and two industries (only one of which is `strategic') to highlight the role of the `scale elasticity' of the strategic industry and the consequences of the most common assumptions on market structure in quantitative trade analyses.PPN: PPN: 1881523462Package identifier: Produktsigel: ZDB-1-CEPPNo physical items for this record