WTO website

The World Trade organization will serve as the government resource. The World Trade Organization has a powerful say in the development of international trade through their influence on regulations. On their website, a variety of publications endorsed by the WTO can be found, dealing with the societal impacts of globalization. In particular, there is a paper dealing primarily with Wages and employment as two major issues found here.

The conclusion was supportive of free trade: “The findings of the above studies may be summarized as follows. First, globalization and, in particular, offshoring of activity may lead to higher job turnover in the short run. Second, in the long run, there is no indication that trade or offshoring leads to higher unemployment (or lower employment) overall, although employment of low skilled workers may suffer while high-skilled employment may expand. Third, while he literature finds that these effects are statistically significant, the economic magnitude thereof is still debated, with many studies concluding that they are economically negligible. Fourth, there is evidence that the structural changes away from manufacturing towards service sectors in advanced economies goes hand in hand with the process of globalization. However, whether or not there is a causal relationship is still to be investigated.”  Counter arguments, such as “Thus, a 1 per cent increase in foreign outsourcing results in a 0.15 per cent decrease in sectoral employment in manufactures and 0.08 per cent in services.” Were also presented however, which can form the basis of a rebuttal of their stance.

The WTO articles had a less prescriptive tone and outlined how different theories and models had different conclusions regarding global trade’s impact on wages and employment. This resource will serve as the starting point of researching different economists’ perspective on this issue. The fact that the WTO tends to lobby for increased trade but also presents weaknesses in the data used and opposing viewpoints increased my trust of the WTO website as a source.


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