Globalization, Economic Growth, Poverty and Environmental Degradation in Least Developed Countries - A Review
Posted: 17 Sep 2007
Date Written: September 17, 2007
It has been widely accepted that economic globalization is inevitable, and that globalization plays an increasingly important role in determining relative economic growth among countries. Considerable studies have addressed that increased in globalization or trade liberalization is directly or indirectly responsible for environmental degradation due to welfare loss and poverty inequalities. This paper discusses the third world countries globalization process incorporating trade, environmental externalities and poverty in three ways - first, environmental degradation poses an increasing threat to economic growth and economic growth through industrialization has been seen to lead to increased overuses of environmental resources. Second, trade liberalization encourages industrialization and manufacturing sector, overuses of resources leading to increased pollution. Third, past researchers have agued that globalization should help the poor but evidence suggests that globalization contributes to a positive and substantial share to regional inequality and the share rises over time.
Keywords: Globalization, trade, economic growth, environment, poverty, third world countries
JEL Classification: F10, F19, N5, N7
Suggested Citation: Suggested Citation