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KIEP Opinions
Policy Combinations for Inclusive Globalization
- Author NAHM Sihoon
- Date2018-04-18
Even if trade liberalization policy brings more gain than loss, policies for redistributing trade gains, reducing inequality, and minimizing trade adjustment costs must accompany the globalization process to alleviate resistance and make economic growth sustainable. Trade liberalization make the overall economy better, but there are winners and losers. Long-lasting structural transformation occurs and less skilled workers are more vulnerable to this. As a result, the political pressure against globalization policies increases. Therefore, labor policy that compensates for the cost of coping with globalization must be accompanied with other policies.
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