Europe Taking the Lead in Responsible Globalisation

Economics Discussion Papers, Kiel Institute for the World Economy, No 2017-42

14 Pages Posted: 18 Jun 2018

See all articles by Karl Aiginger

Karl Aiginger

Austrian Institute of Economic Research (WIFO)

Heinz Handler

Austrian Institute of Economic Research (WIFO); Vienna University of Technology - Institute of Statistics and Mathematical Methods in Economics, Research Group Economics (ECON); Austrian Federal Chancellery - Verwaltungsakademie des Bundes

Date Written: July 7, 2017

Abstract

Political opposition to globalisation has risen in industrialized countries, although the positive overall effects on the growth of the world economy and the alleviation of poverty are empirically verifiable. However, the effects of globalisation vary according to regions, professional groups, and education. In the period of intensive globalisation, unemployment and inequality have risen, and people feel their lives to be determined by forces they cannot influence. Since the many new challenges, such as climate protection, can be better solved by worldwide efforts, it is indispensable to avoid new national barriers and to strengthen the endorsement of globalisation and the concomitant welfare effects. However, it is also necessary to respect cultural differences in preferences and to view globalisation as a search and learning process. Instruments for the implementation of such a strategy may vary according to regional specifics. Social and ecological goals – gaining higher importance with rising per capita incomes – are well-represented in the European model, but for worldwide solutions other socio-economic models will offer preferences and solutions. Apart from the announced partial withdrawal of the United States from globalisation and the upcoming dominance of China in world affairs and large scale investment, Europe would be well-advised to take a greater responsibility if not the lead in determining the rules of globalisation. Based on an opinion-forming process within Europe, responsible globalisation can significantly improve the quality of life in Europe and its partners worldwide.

Keywords: Globalization, Europe, USA, China, trade agreements

JEL Classification: E02, E61, F13, F42, O10

Suggested Citation

Aiginger, Karl and Handler, Heinz J., Europe Taking the Lead in Responsible Globalisation (July 7, 2017). Economics Discussion Papers, Kiel Institute for the World Economy, No 2017-42, Available at SSRN: https://ssrn.com/abstract=3189721 or http://dx.doi.org/10.2139/ssrn.3189721

Karl Aiginger

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Heinz J. Handler (Contact Author)

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Arsenal 20
Vienna, A-1103
Austria
+43 1 79826010 (Phone)

HOME PAGE: http://www.wifo.ac.at

Vienna University of Technology - Institute of Statistics and Mathematical Methods in Economics, Research Group Economics (ECON) ( email )

Wiedner Hauptstraße 8/105-3
Vienna, 1040
Austria

HOME PAGE: http://www.econ.tuwien.ac.at

Austrian Federal Chancellery - Verwaltungsakademie des Bundes ( email )

Mauerbachstrasse 43-45
Vienna, A-1140
Austria

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