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The aim of this paper is to investigate whether a Nash equilibrium of a two-country trading economy is symmetry-breaking or not.

The approach to tackle this topic is a theoretical treatment by the general equilibrium trade theory and game theory.

If each government's domestic policy serving private production is diminishing to the private production scale, the Nash equilibrium is not symmetry-breaking.

In the existing study of Chatterjee (2017), a similar result is derived by focusing on the properties of each country's GDP function. The authors, however, consider an economy where each country's PPF is strictly concave and show that the Nash equilibrium uniquely exists and this equilibrium is symmetry.

The catch word “Globalization” has been defended by advocates for lifting people out of poverty and the inequality in the world. But it has been criticized by opponents for failing to solve the problem of poverty, inequality, and for increasingly creating wealth disparity. This raises the question. The fact is that the contemporary world exhibits very high levels of inequality of income and wealth both between countries and within countries. Wealth inequality is more pronounced than that of income inequality across the globe and within-countries. Evidence suggests that rising inequality and wealth disparity arising out of globalization drive is choking off the potential benefits to the poor. In this backdrop, a composite assessment has been made in the present chapter to answer the question “whether globalization with its particular ideology, the market fundamentalism has benefited many and whether the performance on the distributional front has really been impressive.” From facts and evidence, the study finds that inequalities in income and wealth, also in wages have widened in many developed, developing developed, and developing countries. Technological change and globalization are their main sources.

The paper aims to assess to what extent the general trends with regard to world inequality can be explained by rising international economic integration, technological change and (labour market) institutions.

Based on the existing literature, the stylized facts on inequality between and within nations, globalisation and technological change are reviewed, after which the empirical evidence of the impact of international trade and poverty in developing countries is discussed.

The paper argues that despite substantial theoretical and empirical contributions, so far no straightforward conclusions are warranted. However, historical evidence suggests that, from a policy perspective, the rise in inequality – witnessed in a large number of developing as well as developed countries – ought to be acknowledged and tackled to avoid a possible backlash against globalisation. The inconclusiveness that empirical work on inequality and its determinants offers, might be explained by substantial differences across countries in their institutional framework.

The importance of interactions between institutions, technology and globalisation and their impact on world inequality is still not very well understood. The paper is an appeal for investigating more these interactions.

This paper examines the inter‐relationship between migration of persons and international trade in goods and services. Trade and immigration policies, their effects and inter‐dependence are examined from a variety of viewpoints across several disciplines, and an attempt is made to offer the outline of a synthesis. The relationship between trade and migration policies is of immediate relevance to policy‐makers. Unless such policies were coordinated, lawmakers might find that the desired effects of say, immigration policy might well be undone by independently chosen trade policy and conversely.

The benefits of trade liberalization on upskilling and skill-based wage premiums for high-skilled workers have recently been questioned in policy circles, in part because of rising income inequality and populist movements in developed economies such as the USA. The purpose of this paper is to determine the effects of trade liberalization on the relative supply and demand for skills.

Through the systematic review of the literature on trade and skill acquisition, this paper isolates a total of 25 articles published over the past two decades.

Key findings demonstrate the importance of the relative development of the trading partner, with more developed countries experiencing higher upskilling, while less developed countries experience deskilling. Technology, geographic level of analysis, sector and gender were also found to be important influences on human capital acquisition associated with international trade.

Overall, the authors find support for the idea that trade with developing countries places pressure on low-skill jobs in developed countries but increases the demand for educated workers. The implications of shifts in skills for public policy-making and in terms of the skill premium on wages are discussed.

Purpose – This chapter aims at exploring the effects of globalization on technological change by focusing on the determinants of the direction of technological change at the firm level of analysis by following the induced technological change approach implemented by the localized technological change hypothesis.

Methodology/approach – In the empirical analysis, we proxy the direction of technological change by means of the changes in the output elasticity of capital and analyze how it is affected by the changes in factor market costs and firms' attributes for a panel of 1,113 companies listed on UK and the main continental Europe financial markets for the period 1995–2003.

Findings – We find that small firms are more likely to introduce capital-intensive technological changes while large firms will introduce skill-intensive technological changes.

Research limitations/implications – Our model provides a clear analytical framework that interprets the growing skill intensity of the advanced economies as the result of the introduction of new technologies induced by the growing globalization and biased by the characteristics and the types of innovation strategies of the firms.

Originality/value of paper – In so doing, the chapter adds to the existing literature in that it first explores the effects of globalization upon factor markets and, second, it investigates the effects of the direction of technological change within a microeconomic perspective.

This chapter builds up a simple general equilibrium trade model where, in the absence of a credit market for human capital formation, initial distribution of capital endowment and relevant factor prices determine the size of the three income classes. The poor, with little capital, invests in traditional manufacturing, the middle-income group invests solely in human capital and the rich invests in both. Chances are that such an economy will export both high- and low-skilled goods, importing the middle one. Conventional wisdom suggests that greater skill premium encourages skill formation. In contrast, we show that higher unskilled wage and lower degree of income inequality are consistent with greater skill formation. We also show that protection discourages skill formation and may aggravate inequality.

The present chapter throws light on the famous and very important issue of using eco-friendly, pollution free technology, named as ‘green technology’ or ‘green capital’ by developing economies in the sphere of environmental economics by using general equilibrium framework and tries to examine its impact on different polluting and non-polluting sectors of the economy. The present chapter has done so by using the concepts of ‘regime change’ and ‘endogenised green capital’ – these are the unique features of this work. Here, the authors have come across interesting outcomes by encompassing trade liberalisation in the form of international green capital immobility and international green capital mobility and it leads to an expansion of the sector that utilises it.

Industrial development in ASEAN is closely related to structural changes and industrial adjustments taking place in the industrial countries and the other developing economies in the Asia‐Pacific region. Some activities which have been edged out or phased out in the process of industrial restructuring in Japan and the NICs have migrated to the ASEAN member countries through foreign direct investment channels. Therefore, this paper aims to examine the “flying geese” paradigm and discusses the extent to which this pattern has generated a mutually reinforcing, harmonious process of industrialisation in ASEAN.