NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trade, Social Insurance, and the Limits to Globalization

Dani Rodrik

NBER Working Paper No. 5905
Issued in January 1997
NBER Program(s):   ITI   IFM

International economic integration increases exposure to external risk and intensifies domestic demands for social insurance through government programs. But international economic integration also reduces the ability of governments to respond to such pressure by rendering the tax base footloose. With globalization proceeding apace, the social consensus required to maintain domestic markets open to trade may erode to the point where a return to protection becomes a serious possibility.

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Document Object Identifier (DOI): 10.3386/w5905

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