Abstract
Globalization creates both positive externalities and negative effects that undermine economic growth and decrease total factor productivity and economic agents’ motivation. Despite the rapid advance of digital technologies, aggregate productivity growth has slowed over the past decade or so, raising the question of how digital technologies can boost productivity. Costs and benefits are not evaluable making the real effect unclear. Nowadays, globalization seems to be necessary for the economic system, but unsustainable because of the increasing social discontent. In this context, no magic bullet is likely to exist. A crucial need is the recovery of an institutional framework where governments at all levels, are nevertheless again endowed with the function and the power to pursue wellbeing, innovation and growth through proactive economic policies.
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Notes
- 1.
R. Baldwin (2019) believes that Globalization 1.0 and 2.0 favored the G7 countries, while the new globalization 3.0 is definitely favoring countries such as India and China. The reason, in his opinion, is that after a globalization that brought about the shift of goods and services but left investments in innovation in the G7 countries, today the ICT technologies allow the transfer of knowledge according to the axis of the Global value chain. The explosive development of digital technologies creates the possibility of creating artificial intelligence, which in turn may favor emerging countries that can adjust labor skills at much lower costs than in the G7 countries.
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Paganetto, L., Scandizzo, P.L. (2020). Is Globalization Sustainable?. In: Paganetto, L. (eds) Capitalism, Global Change and Sustainable Development. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-46143-0_15
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DOI: https://doi.org/10.1007/978-3-030-46143-0_15
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