POL SCI 124C Chapter Notes - Chapter 8: Externality, Economic Security, Pranab Bardhan
16 Apr 2018
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Pranab bardhan: effects of international trade and capital mobility on the working. Paper shows that a great deal of social justice (sj) remains even with the constraints of globalization. Analyze opportunities and insecurities caused by g. Sense of sj here: poverty alleviation for the working poor. Sense of g: international economic integration and openness to foreign trade and investment (long term investment and capital flows not short term) By most indicators, trade and capital markets are no more globalised today than at the end of 19th century. 4 effects from openness (1) productivity/ product efficiency. Importance because sustainable sj needs an economic base. Investment effects efficiency through (1) providing cheaper and new capital goods and intermediate projects (2) providing new ideas (3) instilling market discipline. ^ need to be skeptical of mechanisms (ex. New technology is only new brand names, used to gouge prices for patented drugs)
