Globalization and Patterns of Economic Development

This chapter explores cross-country patterns of growth in the era of globalization—specifically, during 1980–98, a period in which world trade and financial flows increased enormously, more rapidly than economic output. I’ll argue that the world economy is divided between a “core” that is characterized by self-driven (or endogenous) economic growth, and the rest of the world, whose long-term growth depends on the economic linkages with the core. These linkages are influenced not only by institutional characteristics that economists have long studied (such as openness of trade and protection of property rights) but also by physical endowments and geography....

in Globalization: What’s New

Michael M. Weinstein (ed.)

New York: Columbia University Press, 2005