Globalization and the North-South Gap
2004 Volume 2004 Issue 55 Pages 164-196
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2004 Volume 2004 Issue 55 Pages 164-196
To think of“the globalization and the north-south gap”, two questions must be answered.First, “Is the gap widening in the world?”Then, “If the gap is widening, is it a result of the globalization?”
Generally, the globalization is good for poverty reduction.Economic growth is necessary for poverty reduction, and a good policy environment is required for economic growth.Economic growth is effective for poverty reduction in countries with good governance.
We expect the convergence hypothesis of economic growth in countries with good governance.Thus the globalization reduces the north-south gap.
Japan and the East Asian countries pursued economic growth and equity simultaneously.Japanese government clearly announced this policy philosophy in 1954.Such clear policy announcement, I believe, will improve the quality of economic policy.
