Globalization, Localization of Production Activities and Income Distribution in the Advanced Countries: an Overview

  • Luciano Marcello Milone
Conference paper


This paper intends to analyze the implications of globalization, in terms of income distribution, for the advanced countries on the basis of recent literature on the so-called “new economic geography” (NEG).1 This theoretical approach has underlined, among other things, how the drive toward the unification of markets due to the progressive reduction of both “natural” and trade barriers to international transactions has been increasingly fostering, through the different forms of outsourcing, the fragmentation and dispersion of production activities that stand in contrast with the well-known concentration and agglomeration processes.


Foreign Direct Investment International Trade Income Distribution Relative Price Intermediate Good 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Cline, W.R. (1997): Trade and Income Distribution. Institute for International Economics, Washington.Google Scholar
  2. Feenstra, R.C. (1998): Integration of Trade and Disintegration of Production in the Global Economy. Journal of Economic Perspectives, no.4, 12, pp. 31–50.CrossRefGoogle Scholar
  3. Feenstra, R.C. and Hanson, G.H. (1996): Globalization, Outsourcing, and Wage Inequality. American Economic Review, Papers and Proceedings, May, 86, pp. 240–245.Google Scholar
  4. Franzini, M., Milone, L.M. (1999): I dilemmi del Welfare State nell’epoca della globalizzazione: In : Acocella, N. (ed.): Globalizzazione e stato sociale. Il Mulino, Bologna.Google Scholar
  5. Fujita, M. and Thisse, J-F (1996): Economics of Agglomeration. Journal of the Japanese and International Economies, December, 10, pp. 339–378.Google Scholar
  6. Krugman, P. (1991a): Geography and Trade. MIT Press, Cambridge, (Mass.).Google Scholar
  7. Krugman, P. (1991b): Increasing Returns and Economic Geography. Journal of Political Economy, June, 99, pp.483–499.CrossRefGoogle Scholar
  8. Krugman, P. (1998): What’s New about the New Economic Geography? Oxford Review of Economic Policy, no. 2, 14, pp. 7–17.CrossRefGoogle Scholar
  9. Krugman, P. and Venables, AJ. (1995): Globalization and the Inequality of Nations. Quarterly Journal of Economics, November, 110, pp. 857–880.CrossRefGoogle Scholar
  10. Krugman, P and Venables, AJ (1996): Integration, Specialization, and Adjustment. European Economic Review, April, 40, pp.959–967.CrossRefGoogle Scholar
  11. Lawrence, R.Z. , Slaughter, MJ. (1993): International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup? Brookings Papers on Economic Activity (Microeconomics), no.2, pp. 161–210.Google Scholar
  12. Markusen, J.R., Melvin, J.R., Kaempfer, W.H., Maskus, K.E. (1995): International Trade-Theory and Evidence. McGraw-Hill, New York.Google Scholar
  13. Marshall, A. (1920): Principles of Economics, Macmillan, London.Google Scholar
  14. Ottaviano, G.I.P., Puga, D. (1998): Agglomeration in the Global Economy: A Survey of the ‘New Economic Geography’. The World Economy, August, 21, pp. 707–731.CrossRefGoogle Scholar
  15. Phelps, E.S. (1997): Rewarding Work. Harvard University Press, Cambridge (Mass.).Google Scholar
  16. Puga, D. and Venables, AJ. (1996): The Spread of Industry: Spatial Agglomeration in Economic Development. Journal of the Japanese and International Economies, December, 10, pp.440–464.CrossRefGoogle Scholar
  17. Rodrik, D. (1997): Has Globalization Gone Too Far? Institute for International Economics, Washington.Google Scholar
  18. Sachs, J. D. and Shatz, HJ. (1996): U.S. Trade with Developing Countries and Wage Inequality. American Economic Review, Papers and Proceedings, May, 86, pp. 234–239.Google Scholar
  19. Schiattatila, R. (in this volume): International Relocalization and Employment: An Analysis for the Traditional Italian industries.Google Scholar
  20. Slaughter, MJ. and Swagel, P. (1997): The Effect of Globalization on Wages in the Advanced Economies. In: Staff Studies for the World Economic Outlook, World Economic and Financial Surveys, International Monetary Fund, Washington, December, pp. 78–93.Google Scholar
  21. Venables, AJ. (1996): Localization of Industry and Trade Performance. Oxford Review of Economic Policy, no.3, 12, pp.52–60.CrossRefGoogle Scholar
  22. Venables, AJ. (1998): The Assessment: Trade and Location. Oxford Review of Economic Policy, no.2, 14, pp. 1–6.CrossRefGoogle Scholar
  23. Wood, A. (1994): North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World. Clarendon Press, Oxford.Google Scholar
  24. Wood, A. (1995): How Trade Hurt Unskilled Workers. Journal of Economic Perspectives, no.3, 9, pp. 57–80.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Luciano Marcello Milone

There are no affiliations available

Personalised recommendations