Summary of The Rise of China and India
Blessing or Curse for the Advanced Countries?
Trade with “Chindia” has been mostly a boon, except when it hasn’t.
Not everyone believes that trade with emerging countries like China and India has been a good thing. Be it manufacturing auto parts, reading radiology scans or butchering chickens, no job seems immune to offshoring. Are advanced economies really better off trading with low-wage developing countries? Economist Livio Stracca crunches the numbers and offers some intriguing conclusions. While this statistically dense paper would have benefited from some editorial attention, getAbstract recommends it as a significant aid in understanding how trade between developed and developing economies affects employment and incomes in the rich world.
In this summary, you will learn
- How the rising “North-South trade” affects employment and income growth in developed economies,
- Why “Chindia” trade hurts manufacturing jobs within advanced nations but not overall employment, and
- Why “employment protection legislation” and a reliance on manufacturing lessen the benefits of trade for some advanced economies.
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