Community Research and Development Information Service - CORDIS


This project has sought to analyse the links between globalisation and social exclusion in EU countries using new data analyses, econometric techniques, and general equilibrium modelling. Globalisation is taken to refer to greater interdependence generally among economies, including lower trade barriers, increased trade particularly with lower income countries, and increased cross-border investment. Social exclusion is taken to refer to changes in economic inequality, particularly as reflected in the relative wages of skilled and unskilled workers.
The data analyses from the project produce some striking findings. One is that effects from new trade surges often have more pronounced effects within rather than across sectors; i.e. import surges of one type of apparel product tend to affect other apparel subsectors more so than the whole economy. These findings are also borne out by econometric analyses. General equilibrium modelling confirms findings found elsewhere in the literature that technical change rather than increased trade tends to be the main source of the increased wage inequality often attributed to globalisation.

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Record Number: 7103 / Last updated on: 2005-10-26
Category: PROJ