Comercion internacional

DTI ECONOMICS PAPER NO. 10

Liberalisation and Globalisation: Maximising the Benefits of International Trade and Investment
JULY 2004

The DTI drives our ambition of ‘prosperity for all’ by working to create the best environment for business success in the UK. We help people and companies become more productive by promoting enterprise, innovation and creativity. We champion UK business athome and abroad. We invest heavily in world-class science and technology. We protect the rights of working people and consumers. And we stand up for fair and open markets in the UK, Europe and the world.

DTI Economics Papers
The reviews of the DTI in Autumn 2001 placed analysis at the heart of policy-making. As part of this process the Department has decided to make its analysis and evidencebase more publicly available through the publication of a series of DTI Economics Papers that will set out the thinking underpinning policy development. Previous titles include 1. Bundling, Tying and Portfolio Effects, Professor Barry Nalebuff (Yale University), February 2003 A Comparative Study of the British and Italian Clothing and Textile Industries, Nicholas Owen (DTI), Alan Canon Jones(London College of Fashion), April 2003 UK Competitiveness: Moving to the next stage, Professor Michael Porter and Christian H M Ketels (Institute of Strategy and Competitiveness, Harvard Business School), May 2003 Options for a Low Carbon Future, June 2003 DTI Strategy – The Analysis, November 2003 UK Productivity and Competitiveness Indicators 2003, November 2003 Competing in the Global Economy – TheInnovation Challenge, November 2003 Raising UK Productivity – Developing the Evidence Base for Policy, March 2004 The Benefits from Competition – some Illustrative UK Cases, Professor Stephen Davies, Heather Coles, Matthew Olczak, Christopher Pike and Christopher Wilson (Centre for Competition Policy, University of East Anglia), July 2004

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ContentsAcknowledgements Foreword Executive Summary Introduction Part 1: Principles Chapter 1: Liberalisation And Globalisation – An Overview Chapter 2: The Case For Liberalisation The Relationship Between Trade Openness And Growth The Costs Of Protection Barriers To Taxpayers And Consumers Is Protection Necessary For Development? The Infant Industry Argument The Relationship Between InvestmentLiberalisation And Growth Migration Complementary Policies Chapter 3: Adjustment Does Liberalisation Destroy Or Create Jobs? The Uk Experience Increased Global Tradability Of Services Or “Offshoring” Environmental Impacts Of Trade And Investment Liberalisation Chapter 4: Liberalisation And Equity Liberalisation And Income Distribution Liberalisation And Poverty Trade Liberalisation And Women LiberalisationAnd Labour Standards In Developing Countries Impact Of Tariff Cuts On Government Revenues In Developing Countries Part 2: Policy Chapter 5: The Government’s Trade And Investment Policy Why Do We Have A Multilateral Trade System? Protection And Developing Countries What Might Be Gained From Services Liberalisation? What Might Be Gained From Agricultural Liberalisation? 5 6 7 8 9 10 17 17 21 24 30 3742 46 47 52 59 63 64 65 68 72 75 80 81 82 89 93 97

What Might Be Gained From Liberalisation In The Non-Agricultural Sector? Investment And Competition Issues Chapter 6: Role Of Government in Facilitating Trade and Investment Markets And Their Limits: The Case For Intervention Market Failures In Trade And Investment Trade Development And Productivity Promoting Investment Chapter 7: FutureChallenges Implementation Challenges Trade Defence Conclusion Annex Recent Trends In World Trade And Investment Bibliography

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Acknowledgements
This DTI economics paper has been drafted mainly by economists in DTI and UKTI, but has benefited from substantial inputs from economists in other parts of government, notably: the Department for...